During $2024,$ its first year of operations, Baginski Steel Corporation reported a net operating loss of $$495,000$ for financial reporting and tax purposes. During $2025,$ Baginski reported income of $$275,000$ for financial reporting and tax purposes. The enacted tax rate is $25\%.$

Required:

Prepare the journal entry to recognize Baginski's $2025$ tax expense or tax benefit.

Show the lower portion of the $2025$ income statement that reports income tax expense or benefit.

Answer is complete but not entirely correct.

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Prepare the journal entry to recognize Baginski's $2025$ tax expense or tax benefit.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

$\backslash$table$[[$No$,$Event,,General Journal,Debit,Credit$],[1,1,$Income tax expense,,$68,750,],[,,$Deferred tax asset,,,$13,750ox$