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Crane Corporation reported the following income for each of the years indicated. For each year, accounting income and income for tax purposes were the same.
Crane Corporation reported the following income for each of the years indicated. For each year, accounting income and income for tax purposes were the same. All tax rates indicated were enacted by the beginning of 2020. Crane's policy is to carry back any tax losses first before carrying forward any remaining losses to future years. Tax Rate 30% Year 2020 2021 2022 2023 2024 2025 Income/ (Loss) 33,000 53,000 21,000 (119,000) (51,000) 80,000 33% 35% 38% 32% 32% Prepare the journal entries for the years 2022 to 2025 to record income taxes. Assume that, at the end of each year, the loss carryforward benefits are judged more likely than not to be realized in the future. Crane follows the future income taxes method under ASPE. (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 for the amounts. Record journal entries in the order presented in the problem.) Debit Credit Date 2022 Account Titles and Explanation Current Tax Expense Income Tax Payable 2023 Current Tax Expense Income Tax Payable (To record benefit from loss carryback.) me lax Payable (To record benefit from loss carryback.) (To recognize benefit of loss carryforward.) = IND 2024 2025 (To record future tax expense.) (To record current tax expense.)
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