Problem $5$

$(6$ points$)$

BEA Corporation reported a pretax operating loss of $$400,000$ for financial reporting purposes in $2023.$ The enacted tax rate is $25\%.$ There were no temporary differences at the beginning of the year and none originating in $2023.$

BEA anticipated that it is more likely than not that half of the deferred tax asset will ultimately be realized.

a$.$ Prepare a journal entry $($or entries$)$ to record BEA's tax provision for the year $2023.(4$ points$)$

$\backslash$table$[[$Account Description,Debit,Credit$],[,,],[,,],[,,]]$

Workings:

b$.$ Prepare the lower portion of BEA's $2023$ income statement. $(2$ points$)$