Exercise 16-23 (Algo) Net operating loss carryforward [LO16-7] During 2021, its first year of operations, Baginski Steel Corporation reported a net operating loss of $420,000 for financial reporting and tax purposes. The enacted tax rate is. 25%. Required: 1. Prepare the journal entry to recognize the income tax benefit of the net operating loss. Assume the waight of availabie evidence suggests that future taxable income will be sufficient to benefit from future deductible amounts arising from the net operating loss carryforward. 2. Show the lower portion of the 2021 income statement that repoits the income tax benefit of the net operating loss. Complete this question by entering your answers in the tabs below. Prepare the joumal entry to recognize the income tax benefit of the net operating loss. Assume the weight of available avidence suggests that future taxbble income will be sufficient to benefit from future deductible amounts arising from the net operating loss carryforward. (if no entry is required for a transaction/event, select "No joumal entry required" in the first account feid, Enter your answers in whole dollars.). Journal entry worksheet