Crane Corporation had the following tax information: Year 2020 2021 2022 Taxable Income Tax Rate $389,000 311,000 401,000 31% 30% Income Tax Receivable 30% Account Titles and Explanation Taxes Paid $120,590 93,300 In 2023, Crane suffered a net operating loss of $550,000, which it decided to carry back. The 2023 enacted tax rate is 25%. Prepare Crane's entry to record the effect of the loss carryback. (List debit entry before credit entry. Credit account titles are automatically indented when the 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.) 120,300 Allowance to Reduce Deferred Tax Asset to Expected Real Debit 34375 Credit 34375
Crane Corporation had the following tax information: Year 2020 2021 2022 Taxable Income Tax Rate $389,000 311,000 401,000 31% 30% Income Tax Receivable 30% Account Titles and Explanation Taxes Paid $120,590 93,300 In 2023, Crane suffered a net operating loss of $550,000, which it decided to carry back. The 2023 enacted tax rate is 25%. Prepare Crane's entry to record the effect of the loss carryback. (List debit entry before credit entry. Credit account titles are automatically indented when the 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.) 120,300 Allowance to Reduce Deferred Tax Asset to Expected Real Debit 34375 Credit 34375
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter3: Taxes On The Financial Statements
Section: Chapter Questions
Problem 12P
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