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CALCULATOR BACK NEXT Question 20 The following differences enter into the reconciliation of financial income and taxable income of Crane Company for the year ended

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CALCULATOR BACK NEXT Question 20 The following differences enter into the reconciliation of financial income and taxable income of Crane Company for the year ended December 31, 2020, its first year of operations. The enacted income tax rate is 20% for all years. Pretax accounting income $830,000 Excess tax depreciation (412,000) Litigation accrual 83,000 Uneamed rent revenue deferred on the books but appropriately recognised in twable income 73,000 Interest Income from New York municipal bonds (33.000) Taxable income 5541.000 1. Excess tax depreciation will reverse equally ever a four-year period, 2021-2024. 2. It is estimated that the itigation ability will be paid in 2024 3. Rent revenue will be recognized during the last year of the lease, 2024 4. Interest revenue from the New York bonds is expected to be $33,000 each year until their maturity at the end of 2024 Prepare a schedule of future taxable and (deductible amounts. (Enter negative amounts using either a negative ion ereceding the number 6.0.-45 of parentheses ao (45).) 2021 2022 2024 Total Future taxable (deductible) amounts: Depreciation 2023 Litigation Unearned rent Prepare a schedule of the deferred tax asset) and lay at the end of 2020. (Enter negative amounts using either a negative sin preceding the number 45 parentheses (45) Prepare a schedule of the deferred tax Casset) and liability at the end of 2020. (Enter nepative amounts using either a negative son preceding the number.e.O. -45 or parentheses e.o. (45).) Deferred Tax Future Taxable (Deductible) Amounts Tax Rate (Asset) Liability Temporary Difference Depreciation Litigation Uneamed rent Total Since this is the first vear of operations, there is no beginning deterred tax ***et or Hability compute the net deferred tax expense (benefit). Not deferred tax expense Prepare the journal entry to record income tax expense, deferred taxes, and the income taxes payable for 2020. (Credit account titles are automatically invented 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.) Acount Tities and Explanation Debit Credit

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