ABC Inc. reported taxable income for Year 1 through Year 6 as follows. Year Amount Year 1 $175,000 Year 2 65,000 Year 3 (100,000) Year 4 (250,000) Year 5 80,000 Year 6 100,000 The enacted tax rate is 25% for Year 1 and 2, and 40% for years thereafter. There are no differences between taxable income/loss and pretax GAAP income/loss. Management believes that the full amount of any tax loss carryforward benefit is more likely than not to be realized