In 2023, Crane Ltd., which follows IFRS, reported accounting income of $960,000 and the 2023 tax rate was 20%. Crane had two timing differences for tax purposes: CCA on the company's tax return was $450,000. Depreciation expense on the financial statements was $280,000. These amounts relate to assets that were acquired on January 1, 2023, for $1,800,000. Accrued warranty expense for financial statement purposes was $132,000 (accrued expenses are not deductible for tax purposes). This is the first year Crane offers warranties. Both of these timing differences are expected to fully reverse over the next four years, as follows: Year 2024 2025 2026 2027 (a) Depreciation Warranty Difference $55.000 45,000 40,000 30,000 Expense Rate $18,000 20% 28,000 20% 38,000 18% 48,000 18% $170,000 $132,000 Calculate income taxes payable for 2023. Income taxes payable $

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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In 2023, Crane Ltd., which follows IFRS, reported accounting income of $960,000 and the 2023 tax rate was 20%. Crane had two
timing differences for tax purposes:
CCA on the company's tax return was $450,000. Depreciation expense on the financial statements was $280,000. These amounts
relate to assets that were acquired on January 1, 2023, for $1,800,000.
Accrued warranty expense for financial statement purposes was $132,000 (accrued expenses are not deductible for tax purposes).
This is the first year Crane offers warranties.
Both of these timing differences are expected to fully reverse over the next four years, as follows:
Year
2024
2025
2026
2027
(a)
Depreciation
Difference
$55,000
45,000
40,000
30,000
Warranty
Expense Rate
$18,000 20%
28,000 20%
38,000 18%
48.000 18%
$170.000 $132,000
Calculate income taxes payable for 2023.
Income taxes payable $
Transcribed Image Text:Current Attempt in Progress In 2023, Crane Ltd., which follows IFRS, reported accounting income of $960,000 and the 2023 tax rate was 20%. Crane had two timing differences for tax purposes: CCA on the company's tax return was $450,000. Depreciation expense on the financial statements was $280,000. These amounts relate to assets that were acquired on January 1, 2023, for $1,800,000. Accrued warranty expense for financial statement purposes was $132,000 (accrued expenses are not deductible for tax purposes). This is the first year Crane offers warranties. Both of these timing differences are expected to fully reverse over the next four years, as follows: Year 2024 2025 2026 2027 (a) Depreciation Difference $55,000 45,000 40,000 30,000 Warranty Expense Rate $18,000 20% 28,000 20% 38,000 18% 48.000 18% $170.000 $132,000 Calculate income taxes payable for 2023. Income taxes payable $
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