Moore$-$McNeil Inc. had pretax financial income of $$164,000$ in $2025.$ Included in the computation of

that amount is insurance expense of $$7,000$ which is not deductible for tax purposes and never will be$.$

In addition, depreciation for tax purposes exceeds accounting depreciation by $$12,000.$ Prepare Moore$-$McNeil$$s journal entry to record $2025$ taxes, assuming a tax rate of $25\%.$

$2)$ Garzon Inc. incurred a net operating loss of $$600,000$ in $2025.$ The tax rate for all years is $20\%.$

a$.$ Assume Garzon expects to return to profitability in $2026.$ Prepare the journal entry to record the benefits of the loss carryforward.

b$.$ What additional journal entry would be recorded if Garzon determines in $2025$ that it is more likely than not that the entire net operating loss carryforward will not be realized in future years?