New Corp Ltd. has been in operation for five years but only recently has become profitable. In 20X5, the company had significant accumulated tax loss carryforwards of $3,000,000 that were not recorded as assets because probability of use was considered low. In 20X6, management determined that the probability of loss carryforward usage shifted, and it is now probable that the benefit of losses will be realized in the carryforward period. The tax rate is 30%.

Required:
1. Is this a change in policy, an error correction, or a change in estimate? Explain.
2. Provide the 20X6 entry to record the benefit of the loss carryforwards.