Question 1 Crane Corporation has one temporary difference at the end of 2020 that will...
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Question 1 Crane Corporation has one temporary difference at the end of 2020 that will reverse and cause taxable amounts of $53,900 in 2021, $58,600 in 2022, and $63,900 in 2023. Crane's pretax financial income for 2020 is $304,500, and the tax rate is 30% for all years. There are no deferred taxes at the beginning of 2020. Compute taxable income and income taxes payable for 2020. Taxable income Income taxes payable 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 o for the amounts.) Account Titles and Explanation Debit Credit 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)
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