Crane Corporation purchased equipment very late in $2023.$ Based on generous capital cost allowance rates provided in the income Tax Act, Crane claimed CCA on its $2023$ tax return but did not record any depreciation because the equipment was heirg tested. This temperary difference will reverse and cause taxable amounts of $$28,700$ in $2024,$$$30,600$ in $2025,$ and $41,300$in $2026.$ Crane's accounting income for all years is $$221,200$ and the tax rate is $30\%$ ll years. There are no deferred tax accounts at the beginning of $2023.($a$)$ Calculate the deferred tix balances at December $31,2024$ and $2024.$ B$)$ Calculate taxable income and income tax payable for $2024$ and JE for year end $2024$ december $31$Your answer is incorrect.

Calculate taxable income and income tax payable for $2023.$

Taxable income

Income tax payable

eTextbook and Media

List of Accounts

Z Your answer is partially correct.

Prepare the journal entries to record income taxes for $2023.($List all debit entries before credit entries. 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.$)$

Year Account Titles and Explanation

Debit

Credit

$2023$

$($To record current tax expense$)$

$2023$

Deferred Tax Expense

$[$

$($To record deferred tax expense$)$