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Tally & Co. incurred a pretax operating loss of $100,000 in its first year of operations for both financial reporting and income tax purposes. However,

Tally & Co. incurred a pretax operating loss of $100,000 in its first year of operations for both financial reporting and income tax purposes. However, it expects to be profitable in the future. Its expected future income tax rate is 25%.

Prepare Tally & Co.'s journal entry to record its operating loss carryforward.

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