Crane Corporation had the following tax information: Year 2020 2021 2022 Taxable Income Tax Rate $389,000 311,000 401,000 31% 30% Income Tax Receivable 30% Account Titles and Explanation Taxes Paid $120,590 93,300 In 2023, Crane suffered a net operating loss of $550,000, which it decided to carry back. The 2023 enacted tax rate is 25%. Prepare Crane's entry to record the effect of the loss carryback. (List debit entry before credit entry. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) 120,300 Allowance to Reduce Deferred Tax Asset to Expected Real Debit 34375 Credit 34375
Crane Corporation had the following tax information: Year 2020 2021 2022 Taxable Income Tax Rate $389,000 311,000 401,000 31% 30% Income Tax Receivable 30% Account Titles and Explanation Taxes Paid $120,590 93,300 In 2023, Crane suffered a net operating loss of $550,000, which it decided to carry back. The 2023 enacted tax rate is 25%. Prepare Crane's entry to record the effect of the loss carryback. (List debit entry before credit entry. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) 120,300 Allowance to Reduce Deferred Tax Asset to Expected Real Debit 34375 Credit 34375
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Vinubhai
Transcribed Image Text:Crane Corporation had the following tax information:
Year
2020
2021
2022
Taxable Income Tax Rate
$389,000
311,000
401,000
31%
30%
Income Tax Receivable
30%
Account Titles and Explanation
Taxes Paid
$120,590
93,300
In 2023, Crane suffered a net operating loss of $550,000, which it decided to carry back. The 2023 enacted tax rate is 25%.
Prepare Crane's entry to record the effect of the loss carryback. (List debit entry before credit entry. Credit account titles are automatically
indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the
amounts.)
120,300
Allowance to Reduce Deferred Tax Asset to Expected Real
Debit
34375
Credit
34375
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