Exerclse $16-23($Algo$)$ Net operating loss carryforward; financlal statement effects $[$LO$16-7]$

During $2024,$ Its first year of operations, BaginskI Steel Corporation reported a net operating loss of $$404,000$ for financial reporting and tax purposes. The enacted tax rate is $25\%.$

Requlred:

Prepare the journal entry to recognize the Income tax benefit of the net operating loss. Assume the weight of avallable evidence suggests that future taxable income will be sufficient to benefit from future deductible amounts arising from the net operating loss carryforward.

Show the lower portion of the $2024$ income statement that reports the Income tax benefit of the net operating loss.

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Required $2$

Show the lower portion of the $2024$ income statement that reports the income tax benefit of the net operating loss. Note: Amounts to be deducted should be indicated with a minus sign. Enter your answers in whole dollars.