The following information is available for Crane Corporation for $2025.$

Depreciation reported on the tax return exceeded depreciation reported an the income statement by $$110,000.$ This

difference will reverse in equal amounts of $$27,500$ over the years $2026-2029.$

Interest received on municipal bonds was $$10,400$

Rent collected in advance an January $1,2025,$ totaled $$65,100$ for a $3-$year period. Of this amount, $$43,400$ was reported as

unearned at December $31,2025,$ for book purposes.

The taxc rates are $20\%$ for $2025$ and $17\%$ for $2026$ and subsequent years.

Income taves of $$172,000$ are due per the tax return for $2025.$

No deferred taves existed at the beginning of $2025.$

$$ Your answer is correct.

Compute taxable income for $2025.$

Taxable income for $2025$$

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Compute pretax financial income for $2025.$

Pretax financial income for $2025$$

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Your answer is partially correct.

Prepare the journal entries to record income tax expense, deferred income taxes, and income tawes payable for $2025$ and $2026$

Assume taxable income was $$416,000$ in $2026.($List all debit entries before credit entries, Credit occount titles are automatically

indented when amount is entered. Do not indent monually. If no entry is required, select $"$No Entry" for the account titles and enter O for the

amounts. Record journal entries in the order presented in the problem.$)$

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Prepare the income tax expense section of the income statement for $2025,$ beginning with "Incarne before income taxes." $($Enter

negative amounts using either a negative sign preceding the number eg$.-45$ ar parentheses eg$.(45).$

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