Prepare the journal entries for years 2023-2026 to record income tax expense (benefit) and income taxes payable (refundable), and the tax effects of the loss carryforward, assuming that based on the weight of available evidence, it is more likely than not that one-half of the benefits of the loss carryforward will not be realized. (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 O for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation 2023 Income Tax Expense Income Tax Payable 2024 Income Tax Expense Debit 22800 16600 Income Tax Payable 2025 Income Tax Refund Receivable 39400 Deferred Tax Asset (To record income taxes.) Benefit Due to Loss Carryforward Allowance to Reduce Deferred Tax Asset to Expected Rea (To record allowance.) 2026 Income Tax Expense Deferred Tax Asset Income Tax Payable (To record income taxes.) Allowance to Reduce Deferred Tax Asset to Expected Realiz Benefit Due to Loss Carryforward 11625 28500 11625 Credit 22800 16600 39400 11625 23250 5250 11625 Crane Inc. reports the following pretax income (loss) for both book and tax purposes. Pretax Year Income (Loss) Tax Rate 2023 $114,000 20% 2024 83,000 20% 2025 (104,000) 25% 2026 114,000 25% The tax rates listed were all enacted by the beginning of 2023.
Prepare the journal entries for years 2023-2026 to record income tax expense (benefit) and income taxes payable (refundable), and the tax effects of the loss carryforward, assuming that based on the weight of available evidence, it is more likely than not that one-half of the benefits of the loss carryforward will not be realized. (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 O for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation 2023 Income Tax Expense Income Tax Payable 2024 Income Tax Expense Debit 22800 16600 Income Tax Payable 2025 Income Tax Refund Receivable 39400 Deferred Tax Asset (To record income taxes.) Benefit Due to Loss Carryforward Allowance to Reduce Deferred Tax Asset to Expected Rea (To record allowance.) 2026 Income Tax Expense Deferred Tax Asset Income Tax Payable (To record income taxes.) Allowance to Reduce Deferred Tax Asset to Expected Realiz Benefit Due to Loss Carryforward 11625 28500 11625 Credit 22800 16600 39400 11625 23250 5250 11625 Crane Inc. reports the following pretax income (loss) for both book and tax purposes. Pretax Year Income (Loss) Tax Rate 2023 $114,000 20% 2024 83,000 20% 2025 (104,000) 25% 2026 114,000 25% The tax rates listed were all enacted by the beginning of 2023.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter18: Accounting For Income Taxes
Section: Chapter Questions
Problem 18E
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