Crane Inc. reports the following incomes (losses) for both book and tax purposes: Accounting Income/ (Loss) 183,000 93,000 (364,000) 36,000 Year 2023 2024 2025 2026 Tax Rate 30% 32% 34% 35% Crane Inc. follows IFRS and uses the carryback provision where possible. The tax rates listed were all enacted in 2023. Prepare the journal entries for 2025. Assume also that i) it is probable that the company will generate sufficient taxable income in the future so that the benefit of any remaining loss will be realized; ii) company's future profitability is uncertain and there is not enough evidence concerning whether there will be future taxable income. (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. Record journal entries in the order presented in the problem. List all debit entries before credit entries.)

Crane Inc. reports the following incomes (losses) for both book and tax purposes: Accounting Income/ (Loss) 183,000 93,000 (364,000) 36,000 Year 2023 2024 2025 2026 Tax Rate 30% 32% 34% 35% Crane Inc. follows IFRS and uses the carryback provision where possible. The tax rates listed were all enacted in 2023. Prepare the journal entries for 2025. Assume also that i) it is probable that the company will generate sufficient taxable income in the future so that the benefit of any remaining loss will be realized; ii) company's future profitability is uncertain and there is not enough evidence concerning whether there will be future taxable income. (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. Record journal entries in the order presented in the problem. List all debit entries before credit entries.)

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter12: Tax Credits And Payments

Section: Chapter Questions

Problem 23P

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