Headland Inc. incurred a net operating loss of $$503,000$ in $2025.$ The tax rate for all years is $30\%.$ Assume that it is more likely than not that the entire net operating loss carryforward will not be realized in future years.

Prepare all the journal entries necessary at the end of $2025.($List all debit entries before credit entries. Credit account titleslare automatically indented when amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts.$)$

Account Titles and Explanation

Debit

Credit

$($To record carryforward$)$

$($To record allowance$)$