Crane Corporation had the following tax information:

In $2023,$ Crane suffered a net operating loss of $$550,000,$ which it decided to carry back. The $2023$ enacted tax rate is $25\%.$

Prepare Crane's entry to record the effect of the loss carryback. $($List debit entry before credit entry. 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.$)$

Account Titles and Explanation

Debit

Credit

Income Tax Receivable

Allowance to Reduce Deferred Tax Asset to Expected ReaCrane Inc. reports the following incomes $($losses$)$ for both book and tax purposes $($assume the carryback provision is used where possible$)$: