Hendricks Inc. provides consulting and advisory services to prisons across the eastern part of the country. Hendricks began operations in 2021. The enacted tax rate for all years is 25%. Hendricks pre-tax accounting income and taxable income were both $700,000 in 2021 and $850,000 in 2022. Hendricks had no temporary or permanent differences in 2021 or 2022. In 2023 Hendricks reported a net operating loss of $416,000 for financial reporting and tax purposes.

1. Prepare Hendricks journal entry/entries to record 2023 income taxes.
2. What effect, if any, did income taxes have on Hendricks 2023 income statement?