Question: Item 7 1 0 points Return to questionItem 7 During 2 0 2 4 , its first year of operations, Baginski Steel Corporation reported a

Item710 points Return to questionItem 7 During 2024, its first year of operations, Baginski Steel Corporation reported a net operating loss of $450,000 for financial reporting and tax purposes. During 2025, Baginski reported income of $250,000 for financial reporting and tax purposes. The enacted tax rate is 25%. Required: Prepare the journal entry to recognize Baginskis 2025 tax expense or tax benefit. Show the lower portion of the 2025 income statement that reports income tax expense or benefit.

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