Crane Inc. reported the following pretax income (loss) and related tax rates during the years 2019–2022. Pretax Income (loss) Tax Rate 2019 $37,700 40 % 2020 (181,000) 40 % 2021 231,000 20 % 2022 76,800 20 % Pretax financial income (loss) and taxable income (loss) were the same for all years since Crane began business. The tax rates from 2019–2022 were enacted in 2019. Prepare the journal entries for the years 2020–2022 to record income taxes payable (refundable), income tax expense (benefit), and the tax effects of the loss carryforward. Assume that Crane expects to realize the benefits of any loss carryforward in the year that immediately follows the loss year. Date Account Titles and Explanation Debit Credit 2020 2021 2022 Prepare the portion of the income statement, starting with “Operating loss before income taxes,” for 2020
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