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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.)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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whatever in red is incorrect. need help with transactions. and do not give solution in image format ?

Crane Inc. reports the following incomes (losses) for both book and tax purposes: Accounting Income/ (Loss) Year 2023 2024 2025 2026 183,000 93,000 (364,000) 36,000 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.)
Transcribed Image Text:Crane Inc. reports the following incomes (losses) for both book and tax purposes: Accounting Income/ (Loss) Year 2023 2024 2025 2026 183,000 93,000 (364,000) 36,000 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.)
No. Account Titles and Explanation Income Tax Receivable i) Deferred Tax Expense (To recognize the benefit of the loss carryback) Deferred Tax Expense Deferred Tax Liability (To recognize the benefit of the loss carryforward) Current Tax Expense Income Tax Receivable. Debit 84660 18200 Credit 0000 0000 84660 84660 18200 84660
Transcribed Image Text:No. Account Titles and Explanation Income Tax Receivable i) Deferred Tax Expense (To recognize the benefit of the loss carryback) Deferred Tax Expense Deferred Tax Liability (To recognize the benefit of the loss carryforward) Current Tax Expense Income Tax Receivable. Debit 84660 18200 Credit 0000 0000 84660 84660 18200 84660
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