At the end of 2024, Crane Company has $176,700 of cumulative temporary differences that will result in reporting the following future taxable amounts. 2025 $59,200 2026 47,900 2027 39,700 2028 29,900 $176,700 Tax rates enacted as of the beginning of 2023 are: 2023 and 2024 40% 2025 and 2026 30% 2027 and later 25% Crane's taxable income for 2024 is $327,900. Taxable income is expected in all future years. (a) Prepare the journal entry for Crane to record income taxes payable, deferred income taxes, and income tax expense for 2024, assuming that there were no deferred taxes at the end of 2023. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and
At the end of 2024, Crane Company has $176,700 of cumulative temporary differences that will result in reporting the following future taxable amounts. 2025 $59,200 2026 47,900 2027 39,700 2028 29,900 $176,700 Tax rates enacted as of the beginning of 2023 are: 2023 and 2024 40% 2025 and 2026 30% 2027 and later 25% Crane's taxable income for 2024 is $327,900. Taxable income is expected in all future years. (a) Prepare the journal entry for Crane to record income taxes payable, deferred income taxes, and income tax expense for 2024, assuming that there were no deferred taxes at the end of 2023. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:At the end of 2024, Crane Company has $176,700 of cumulative temporary differences that will result in reporting the following
future taxable amounts.
2025
$59,200
2026
47,900
2027
39,700
2028
29,900
$176,700
Tax rates enacted as of the beginning of 2023 are:
2023 and 2024
40%
2025 and 2026
30%
2027 and later
25%
Crane's taxable income for 2024 is $327,900. Taxable income is expected in all future years.
(a) Prepare the journal entry for Crane to record income taxes payable, deferred income taxes, and income tax expense for 2024,
assuming that there were no deferred taxes at the end of 2023. (List all debit entries before credit entries. Credit account titles are
automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and
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