Exercise $16-24($Algo$)$ Net operating loss carryforward; financial statement effects $[$LO$16-7]$

During $2024,$ its first year of operations, Baginski Steel Corporation reported a net operating loss of $$450,000$ for financial reporting

and tax purposes. During $2025,$ Baginski reported income of $$250,000$ 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.

Complete this question by entering your answers in the tabs below.

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.

Journal entry worksheet

Record $2024$ income tax benefit from operating loss.

Note: Enter debits before credits.