Question: Assume the same facts as in E 16-23. During 2025, Baginski reported income of $200,000 for financial reporting and tax purposes. The enacted tax rate

Assume the same facts as in E 16-23. During 2025, Baginski reported income of $200,000 for financial reporting and tax purposes. The enacted tax rate is 25%.

Required:
1. Prepare the journal entry to recognize Baginski’s 2025 tax expense or tax benefit.
2. Show the lower portion of the 2025 income statement that reports income tax expense or benefit.

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