Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
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
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 $33,100 in 2024,$30,300 in 2025, and 544,500 in 2026 . Crane's accounting income for 2023 is $235,800 and $193,800 in each of 2024 and 2025 , and the tax rate is 3025 for all years. There are no deferred tax accounts at the beginning of 2023. (a) Calculate the deferred tix balances at December 31,2024 and 2024 . Calculate the deferred tax balances at December 31, 2024 and 2025. VValuea not provided in this exercise ($30,300+$44,500574,800) (Loxable) temporary differences Deductible Walues not provided in this exoercise "Values not provided in this exercise? Calculate taxable income and income tax payable for 2024 and 2025. 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 $33,100 in 2024,$30,300 in 2025, and 544,500 in 2026 . Crane's accounting income for 2023 is $235,800 and $193,800 in each of 2024 and 2025 , and the tax rate is 3025 for all years. There are no deferred tax accounts at the beginning of 2023. (a) Calculate the deferred tix balances at December 31,2024 and 2024 . Calculate the deferred tax balances at December 31, 2024 and 2025. VValuea not provided in this exercise ($30,300+$44,500574,800) (Loxable) temporary differences Deductible Walues not provided in this exoercise "Values not provided in this exercise? Calculate taxable income and income tax payable for 2024 and 2025
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started