In 2023, Crane Ltd., which follows IFRS, reported accounting income of $960,000 and the 2023 tax rate was 20%. Crane had two timing differences for tax purposes: CCA on the company's tax return was $450,000. Depreciation expense on the financial statements was $280,000. These amounts relate to assets that were acquired on January 1, 2023, for $1,800,000. Accrued warranty expense for financial statement purposes was $132,000 (accrued expenses are not deductible for tax purposes). This is the first year Crane offers warranties. Both of these timing differences are expected to fully reverse over the next four years, as follows: Depreciation Warranty Year Difference Expense Rate 2024 $55,000 $18,000 20% 2025 45,000 28,000 20% 2026 40,000 38,000 18% 2027 30,000 48,000 18% $170,000 $132,000