Question
The following facts relate to Crane Corporation. 1. Deferred tax liability, January 1, 2020, $25,000. 2. Deferred tax asset, January 1, 2020, $0. 3. Taxable
The following facts relate to Crane Corporation.
1. | Deferred tax liability, January 1, 2020, $25,000. | |
2. | Deferred tax asset, January 1, 2020, $0. | |
3. | Taxable income for 2020, $118,750. | |
4. | Pretax financial income for 2020, $250,000. | |
5. | Cumulative temporary difference at December 31, 2020, giving rise to future taxable amounts, $300,000. | |
6. | Cumulative temporary difference at December 31, 2020, giving rise to future deductible amounts, $43,750. | |
7. | Tax rate for all years, 20%. | |
8. | The company is expected to operate profitably in the future. |
Compute income taxes payable for 2020.
Income taxes payable | $enter Income taxes payable in dollars |
eTextbook and Media
List of Accounts
Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020. (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 | Debit | Credit |
---|---|---|
enter an account title | enter a debit amount | enter a credit amount |
enter an account title | enter a debit amount | enter a credit amount |
enter an account title | enter a debit amount | enter a credit amount |
enter an account title | enter a debit amount | enter a credit amount |
eTextbook and Media
List of Accounts
Prepare the income tax expense section of the income statement for 2020, 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).)
Crane Corporation Income Statement (Partial) choose the accounting period December 31, 2020For the Year Ended December 31, 2020For the Quarter Ended December 31, 2020 | ||
---|---|---|
select an income statement item CurrentDeferredDividendsExpensesIncome before Income TaxesIncome Tax ExpenseNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues | $enter a dollar amount | |
select an opening section name CurrentDeferredDividendsExpensesIncome before Income TaxesIncome Tax ExpenseNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues | ||
select an income statement item CurrentDeferredDividendsExpensesIncome before Income TaxesIncome Tax ExpenseNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues | $enter a dollar amount | |
select an income statement item CurrentDeferredDividendsExpensesIncome before Income TaxesIncome Tax ExpenseNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues | enter a dollar amount | |
enter a subtotal of the two previous amounts | ||
select a closing name for this statement CurrentDeferredDividendsExpensesIncome before Income TaxesIncome Tax ExpenseNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues | $enter a total net income or loss amount |
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