In $2025,$ its first year of operations, Ivanhoe Corp. has a $$840,000$ net operating loss when the tax rate is $35\%.$ In $2026,$ Ivanhoe has $$390,000$ in taxable income and the tax rate remains $35\%.$

Assume that the management of Ivanhoe 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$).$

What journal entries would Ivanhoe 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 $O$ for the amounts. List all debit entries before credit entries.$)$

Account Titles and Explanation

Debit

Credit

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

$($To record allowance amount$)$