Crane company purchase equipment for a $120000 on January 2nd 2020, its 1st day of operations. For book purposes, the equipment will be depreciated using the straight line method over 3 years with no salvage value. Pre tax financial income and taxable income are as follows (refer to picture)

The temporary difference between pretext financial income and taxable income is due to the use of a accelerated depreciation for tax purposes.

Prepare the journal entry to record income taxes for all 3 years (expense, deferrals, and liabilities) assuming that the enacted tax rate applicable to all 3 years is 30%. If no entry is required select no injury for the account titles

Testbank Problem 117 (Part Level Submission) Crane Company purchased equipment for $120,000 on January 2, 2020, its first day of operations. For book purposes, the equipment will financial income and taxable income are as follows: be depreciated using the s 2020 2021 2022 Pretax financial income $195,400 $251,000 $291,000 Taxable income 185,000 251,000 301,400 The temporary difference between pretax financial income and taxable income is due to the use of accelerated depreciation for tax purposes. (a) Prepare the journal entries to record income taxes for all three years (expense, deferrals, and liabilities) assuming that the enacted tax rate applicable to all three 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.) Date Account Titles and Explanation Debit 2020 2021 2022 Click if you would like to Show Work for this question: Open Show Work UNTS