In $2025,$ its first year of operations, Crane Corp. has a $$930,000$ net operating loss when the tax rate is $20\%.$ In $2026,$ Crane has $$480,000$ in taxable income and the tax rate remains $20\%.$

Assume that the management of Crane thinks that it is more likely than not that the loss carryforward will not be realized in the near future because it is a new company $($this is before results of $2026$ operations are known$).$

$($a$)$

What journal entries would Crane make in $2025$ to record the tax effects of the loss carryforward? $($Credit account titles are 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. List all debit entries before credit entries.$)$

Account Titles and Explanation

Debit

Credit

$($To recognize benefit of loss carryforward$)$

What journal entries would Crane make in $2025$ to record the tax effects of the loss carryforward? $($Credit account titles are 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. List all debit entries before credit entries.$)$

$\backslash$table$[[$Account Titles and Explanation,Debit,Credit$]]$

$($To recognize benefit of loss carryforward$)$

$$

$($To record allowance amount$)$