In 2014, its first year of operations, Kimble Corp. has a $770,000 net operating loss when the tax rate is 35%. In 2015, Kimble has $320,000 taxable income and the tax rate remains 35%. Assume the management of Kimble Corp. 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 2015 operations are known).

What are the entries in 2014 to record the tax effects of the loss carryforward?

What entries would be made in 2015 to record the current and deferred income taxes and to recognize the loss carryforward? (Assume that at the end of 2013 it is more likely than not that the deferred tax asset will be realized.)