In 2020, Bailey Corporation discovered that equipment purchased on January 1, 2018, for $50,000 was expensed at that time. The equipment should have been depreciated over 5 years, with no salvage value. The effective tax rate is 30%. Prepare Bailey's 2020 journal entry to correct the error. Bailey uses straight-line depreciation.

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Q: In 2024, internal auditors discovered that PKE Displays, Incorporated, had debited an expense…

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A: The journal entry to correct the error would be:  2024Dec 31Debit Depreciation Expense $75,000…

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A: DEPRECIATION UNDER DOUBLE DECLINING METHOD Rate =100%5 =20% Double declining rate = 20×2=40%

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A:

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