Exercise $16-24($Static$)$ Net operating loss carryforward; financial statement effects $[$LO$16-7]$

During $2024,$ its first year of operations, Baginski Steel Corporation reported a net operating loss of $$360,000$ for financial reporting

and tax purposes. During $2025,$ Baginski reported income of $$200,000$ for financial reporting and tax purposes. The enacted tax rate

is $25\%.$

Required:

Prepare the journal entry to recognize Baginski's $2025$ tax expense or tax benefit.

Show the lower portion of the $2025$ income statement that reports income tax expense or benefit.

Answer is complete but not entirely correct.

Complete this question by entering your answers in the tabs below.

Required $1$

Required $2$

Prepare the journal entry to recognize Baginski's $2025$ tax expense or tax benefit.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.