During $2024,$ its first year of operations, Baginski Steel Corporation reported a net operating loss of $$360,000$ for financial reporting

and tax purposes. During $2025,$ Baginski reported income of $$200,000$ 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.