Question
The following facts relate to Crane Corporation. 1. Deferred tax liability, January 1, 2025, $25,200. 2. Deferred tax asset, January 1, 2025, $0. 3.
The following facts relate to Crane Corporation. 1. Deferred tax liability, January 1, 2025, $25,200. 2. Deferred tax asset, January 1, 2025, $0. 3. Taxable income for 2025, $107,350. 4. Pretax financial income for 2025, $213,000. 5. Cumulative temporary difference at December 31, 2025, giving rise to future taxable amounts, $271,200. 6. 7. Cumulative temporary difference at December 31, 2025, giving rise to future deductible amounts, $39,550. Tax rate for all years, 20%. 8. The company is expected to operate profitably in the future. Compute income taxes payable for 2025. Income taxes payable $ eTextbook and Media List of Accounts 107350 Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2025. (List all debit entries before credit entries. Credit account titles are automatically indented when 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.) Account Titles and Explanation Income Tax Expense Deferred Tax Asset Income Tax Payable Deferred Tax Liability Debit 107350 5040 Credit 107350 5040 Prepare the income tax expense section of the income statement for 2025, beginning with the line "Income before income taxes." (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Income before Income Taxes Income Tax Expense Current Deferred Net Income / (Loss) CRANE CORPORATION Income Statement (Partial) For the Year Ended December 31, 2025 $ $ 213000 $
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