Exercise 16-24 (Algo) Net operating loss carryforward; financial statement effects [LO16-7] 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: 1. Prepare the journal entry to recognize Baginski's 2025 tax expense or tax benefit. 2. 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 journat entry required" in the first account field. Exercise 1624 (Algo) Net operating loss carryforward; financial statement effects [LO16-7] During 2024, its first year of operations, Baginski Steel Corporation teported 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: 1. Prepare the journal entry to recognize Baginski's 2025 tax expense or tax benefit. 2. 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. Show the lower portion of the 2025 income statement that reports income tax expense or benefit