The Village Co. manufactures and sells television sets. The company recorded warranty expense of 2% of sales for accounting purposes. The following information is taken from the company’s books:

Net book value of depreciable assets at 31 December 20X5 is $7,600,000. Undepreciated capital cost at 31 December 20X5 is $5,600,000. There is a deferred income tax liability of $800,000 with respect to this temporary difference. There is no taxable income remaining to absorb loss carrybacks prior to 20X5.
The tax rate is 40% in 20X5 through 20X7 and increases to 45% for 20X8 and 20X9. Tax rates are enacted in the year to which they pertain. There are no other sources of temporary differences.

Required:
Give journal entries to record income taxes for 20X6 to 20X9, inclusive. Realization of the loss carryforward is considered to be probable in 20X6.

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(in thousands) Sales Actual warranty claims paid Accounting earnings (loss) before taxes Depreciation Capital cost allowance Dividend revenue (nontaxable) 20X5 $3,000 60 nil 600 600 nil 20X6 $6,000 80 (980) 600 nil 20 20X7 $8,000 200 nil 600 500 20 20X8 $10,000 90 2,000 600 450 nil 20X9 $15,000 75 4,000 600 400 nil