For the year ended December 31, 2023, Crane Ltd. reported income before income taxes of $82,000. In 2023, Crane Ltd. paid $45,000 for rent; of this amount, $15,000 was expensed in 2023. The remaining $30,000 was treated as a prepaid expense for accounting purposes and would be expensed equally over the 2024-2025 period. The full $45,000 was deductible for tax purposes in 2023. The company paid $66,000 in 2023 for membership in a local golf club (which was not deductible for tax purposes). In 2023 Crane Ltd. began offering a 1-year warranty on all merchandise sold. Warranty expenses for 2023 were $32,000, of which $26,000 was actual repairs for 2023 and the remaining $6,000 was estimated repairs to be completed in 2024. Meal and entertainment expenses totalled $16,000 in 2023, only half of which were deductible for income tax purposes. Depreciation expense for 2023 was $160,000. Capital Cost Allowance (CCA) claimed for the year was $181,000. Crane was subject to a 20% income tax rate for 2023. Crane follows IFRS. Calculate taxable income and the amount of current income taxes expense for 2023. Taxable income $enter a dollar amount Income taxes payable 2) Record current income taxes for 2023. (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 0 for the amounts. List debit entry before credit entry.) Debit Credit 3) Record deferred income taxes for 2023. (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 0 for the amounts. List debit entry before credit entry.) Debit Credit Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
For the year ended December 31, 2023, Crane Ltd. reported income before income taxes of $82,000.
In 2023, Crane Ltd. paid $45,000 for rent; of this amount, $15,000 was expensed in 2023. The remaining $30,000 was treated as a prepaid expense for accounting purposes and would be expensed equally over the 2024-2025 period. The full $45,000 was deductible for tax purposes in 2023.
The company paid $66,000 in 2023 for membership in a local golf club (which was not deductible for tax purposes).
In 2023 Crane Ltd. began offering a 1-year warranty on all merchandise sold. Warranty expenses for 2023 were $32,000, of which $26,000 was actual repairs for 2023 and the remaining $6,000 was estimated repairs to be completed in 2024.
Meal and entertainment expenses totalled $16,000 in 2023, only half of which were deductible for income tax purposes.
Depreciation expense for 2023 was $160,000. Capital Cost Allowance (CCA) claimed for the year was $181,000.
Crane was subject to a 20% income tax rate for 2023. Crane follows IFRS.
- Calculate taxable income and the amount of current income taxes expense for 2023.
| Taxable income | $enter a dollar amount | |
|---|---|---|
| Income taxes payable |
2) Record current income taxes for 2023. (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 0 for the amounts. List debit entry before credit entry.)
Debit Credit
3) Record
Debit Credit
Note:-
- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
- Answer completely.
- You will get up vote for sure.
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