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Crane Tar and Gravel Ltd$.$ operates a road construction business. In its first year of operations, the company won a contract to build a

road for the municipality of Cochrane West. It is estimated that the project will be completed over a three$-$year period starting in June

Crane uses the percentage$-$of$-$completion method of recognizing revenue on its long$-$term construction contracts. For tax

purposes, and in order to postpone the tax on such revenue for as long as possible, Crane uses the completed$-$contract method

allowed by the CRA. For the second year of operations, Crane made progress on the construction of the road for the municipality. The

account balances at December $31,2024,$ for the construction project and the accounting and tax balances of accounts related to the

equipment used for construction follow. $($The balances at December $31,2023,$ are also listed.$)$

Crane's tax rate is $25\%$ for $2023$ and subsequent years. Income before income tax for the year ended December $31,2023,$ was

$$196,600$ and for December $31,2024,$ was $$127,900.($a$)$

Correct Answer $($Used$)$

Calculate the deferred tax asset or liability balances at December $31,2024.$

Deferred tax

$$($b$)$

Your answer is incorrect.

Calculate taxable income and income tax payable for $2024.($Round answers to $0$ decimal places, e$.$g$.5,275.)$

Taxable income

Income tax payable

$

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$25\%$ score reduction after attempt $1($c$)$

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$($d$)$

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$($e$)$

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$($f$)$

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