The following facts relate to Crane Corporation. 1. Deferred tax liability, January 1, 2025, $30,600. 2. Deferred tax asset, January 1, 2025, $10,200. 3. Taxable income for 2025, $107,100. 4. Cumulative temporary difference at December 31, 2025, giving rise to future taxable amounts, $234,600. 5. Cumulative temporary difference at December 31, 2025, giving rise to future deductible amounts, $96,900. 6. Tax rate for all years, 20%. No permanent differences exist. 7. The company is expected to operate profitably in the future. (a) Your answer is incorrect. Compute the amount of pretax financial income for 2025. Pretax financial income $ 21420
The following facts relate to Crane Corporation. 1. Deferred tax liability, January 1, 2025, $30,600. 2. Deferred tax asset, January 1, 2025, $10,200. 3. Taxable income for 2025, $107,100. 4. Cumulative temporary difference at December 31, 2025, giving rise to future taxable amounts, $234,600. 5. Cumulative temporary difference at December 31, 2025, giving rise to future deductible amounts, $96,900. 6. Tax rate for all years, 20%. No permanent differences exist. 7. The company is expected to operate profitably in the future. (a) Your answer is incorrect. Compute the amount of pretax financial income for 2025. Pretax financial income $ 21420
Chapter6: Deductions And Losses: In General
Section: Chapter Questions
Problem 56P
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