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Exercise 19-2 The following information is available for Crane Corporation for 2016 (its first year of operations). 1.Excess of tax depreciation over book depreciation, $36,800.

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Exercise 19-2

The following information is available for Crane Corporation for 2016 (its first year of operations).

1.Excess of tax depreciation over book depreciation, $36,800. This $36,800difference will reverse equally over the years 2017-2020.

2.Deferral, for book purposes, of $18,300of rent received in advance. The rent will be recognized in 2017.

3.Pretax financial income, $320,500.

4.Tax rate for all years,40%.

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