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 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 before Income TaxesIncome Tax ExpenseNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues
select an income statement item 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 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 before Income TaxesIncome Tax ExpenseNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues
$enter a total net income or loss amount