PROBLEM$2(10$ POINTS$)$

In $2022$ Arpen repogted a net operating loss of $$120,000$ for both financial reporting and tax porposes. Arpen does not meet the criteria to be allowed to carry net operating lonses back for a refind of prior taxes paid but cen carry net operating losses forward. Ausume tax rates for all years are $30\%.$

Prepare Arpen's $2022$ income tax expmne ioumal entry. $(3$ poins$)$

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Ausume Arpen reported $580,000$ net income for $2023.$ Also assume that in $2023,$ enacted tax rates changed to $25\%,$ beginning in $2024.$ Prepare Arpen's $2023$ income tax expense journal entry.

$(7$ points$)$

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