The following information is available for Mooney Corporation:

$1)$ Year : $2024202520262027$

Accounting Income: $$250,000300,000320,000340,000$

$2)$ Installments sales in $2024$ is $$80,000.$ The company will receive cash in $2025$ of $$35,000,2026$ of $$30,000,$ and $2027$ of $$15,000.$

$3)$ In $2024,$ Mooney Corporation collected rent revenue for $2025-2027$ tenant occupancy. For income tax reporting, the rent is taxed when collected. For financial statement reporting, the rent is recorded as deferred revenue and then recognized as income in the period tenants occupy the rental property. The deferred portion of the rent collected in $2024$ amounted to $$40,000$ at December $31,2024.$ The revenue will be recognized in $2025($$$15,000),2026($$$20,000)$ and $2027($$$5,000).$

$4)$ During $2026,$ nontaxable municipal bond interest revenue was $$30,000.$

$5)$ Tax rate in $2024$ and $2025$ was $30\%,$ but legislation passed in $2025$ changing tax rate to $40\%,$ effective in $2026.$

Required:

Make the year$-$end journal entries for the years $2024,2025,2026$ and $2027$ to record the tax expense.

Net operating loss carryforward

During $2024,$ its first year of operations, Baginski Steel Corporation reported a net operating loss of $$360,000$ for financial reporting and tax purposes. The enacted tax rate is $25\%.$

Required:

$1.$Prepare the journal entry to recognize the income tax benefit of the net operating loss. Assume the weight of available evidence suggests that future taxable income will be sufficient to benefit from future deductible amounts arising from the net operating loss carryforward.

$2.$Show the lower portion of the $2024$ income statement that reports the income tax benefit of the net operating loss.