JG Ltd. has been in business for five years and incurs a loss of $520,000 in 20x15. The company has no temporary differences. The history of the company's earnings since they began operations is as...

Extracted text: JG Ltd. has been in business for five years and incurs a loss of $520,000 in 20x15. The company has no temporary differences. The history of the company's earnings since they began operations is as follows: Year Taxable Income (loss) Taxes paid (recovered) 20x11 $300,000 $114,000 20x12 ($150,000) (57,000) 20x13 $330,000 125,400 20x14 $80.000 30,400 The tax rate has been constant at 38%. Required: Prepare journal entries to record the recovery of taxes and any journal entries necessary for any loss carry forwards. Assume probability of recovery is greater than 50%