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Crane Inc. reports the following pretax income (loss) for both financial reporting purposes and tax purposes. Pretax Income Year (Loss) Tax Rate 2023 $114,000 17% 2024 98,000 17% 2025 (204,000) 19% 2026 314,000 19% The tax rates listed were all enacted by the beginning of 2023. (a) Prepare the journal entries for the years 2023-2026 to record income tax expense (benefit) and income taxes payable (refundable) and the tax effects of the loss carryforward, assuming that at the end of 2025 the benefits of the loss carryforward are judged more likely than not to be realized in the future. (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 enter O for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation 2023 Debit Credit

Crane Inc. reports the following pretax income (loss) for both financial reporting purposes and tax purposes. Pretax Income Year (Loss) Tax Rate 2023 $114,000 17% 2024 98,000 17% 2025 (204,000) 19% 2026 314,000 19% The tax rates listed were all enacted by the beginning of 2023. (a) Prepare the journal entries for the years 2023-2026 to record income tax expense (benefit) and income taxes payable (refundable) and the tax effects of the loss carryforward, assuming that at the end of 2025 the benefits of the loss carryforward are judged more likely than not to be realized in the future. (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 enter O for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation 2023 Debit Credit

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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Crane Inc. reports the following pretax income (loss) for both financial reporting purposes and tax purposes. Pretax Income Year (Loss) Tax Rate 2023 $114,000 17% 2024 98,000 17% 2025 (204,000) 19% 2026 314,000 19% The tax rates listed were all enacted by the beginning of 2023. (a) Prepare the journal entries for the years 2023-2026 to record income tax expense (benefit) and income taxes payable (refundable) and the tax effects of the loss carryforward, assuming that at the end of 2025 the benefits of the loss carryforward are judged more likely than not to be realized in the future. (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 enter O for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation 2023 Debit Credit
Transcribed Image Text:Crane Inc. reports the following pretax income (loss) for both financial reporting purposes and tax purposes. Pretax Income Year (Loss) Tax Rate 2023 $114,000 17% 2024 98,000 17% 2025 (204,000) 19% 2026 314,000 19% The tax rates listed were all enacted by the beginning of 2023. (a) Prepare the journal entries for the years 2023-2026 to record income tax expense (benefit) and income taxes payable (refundable) and the tax effects of the loss carryforward, assuming that at the end of 2025 the benefits of the loss carryforward are judged more likely than not to be realized in the future. (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 enter O for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation 2023 Debit Credit
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