Problem 19-05 a, c-d (Part Level Submission)

Crane Inc. reported the following pretax income (loss) and related tax rates during the years 20192022.

		Pretax Income (loss)			Tax Rate
2019		$64,000			40	%
2020		(144,000)			40	%
2021		160,000			20	%
2022		80,000			20	%

Pretax financial income (loss) and taxable income (loss) were the same for all years since Crane began business. The tax rates from 20192022 were enacted in 2019.

(a)

Prepare the journal entries for the years 20202022 to record income taxes payable (refundable), income tax expense (benefit), and the tax effects of the loss carryforward. Assume that Crane expects to realize the benefits of any loss carryforward in the year that immediately follows the loss year. (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.)

Date	Account Titles and Explanation	Debit	Credit
2020
2021
2022