accounting

During 2016, its first year of operations, Baginski Steel Corporation reported a net operating loss of $445,000 for financial reporting and tax purposes. The enacted tax rate is 40%. Required: 1. Prepare the journal entry to recognize the income tax benefit of the net operating loss. Assume the weight of available evidence suggests future taxable income sufficient to benefit from future deductible amounts from the net operating loss carryforward. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in thousands.) View transaction list Journal entry worksheet es Record 2016 income tax benefit from operating loss. Note: Enter debits before credits. Event General Journal Debit Credit Record entry Clear entry View general journal 2. Show the lower portion of the 2016 income statement that reports the income tax benefit of the net operating loss. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands.)