Spamela Hamderson Inc. reports the following pretax income $($loss$)$ for both financial reporting purposes and tax purposes.

The tax rates listed were all enacted by the beginning of $2023.$Prepare the journal entries for $2025$ and $2026,$ assuming that based on the weight of available evidence, it is more likely than not

that one$-$fourth of the benefits of the loss carryforward will not be realized. $($List all debit entries before credit entries. 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. Record journal entries in the order presented in the problem.$)$

Date Account Titles and Explanation

Debit

Credit

$2025$

Income Tax Expense

$|$

$($To record income taxes.$)$

$($To adjust allowance.$)$

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