In 2025, Crane Company discovered an error while preparing its financial statements. A building constructed at the beginning of 2024 costing $1329900 has not been depreciated. The estimated useful life of the building is 30 years with no salvage value. Straight-line depreciation is used. Crane also used straight-line depreciation for tax purposes and properly included depreciation on its tax return. Income tax payable was also reported correctly at a tax rate of 20%. Income before tax and depreciation expenses in 2025 was $430000. What would be the 2025 net income if depreciation had been recorded properly? $385670 O $394536 O $308536 O $430000
In 2025, Crane Company discovered an error while preparing its financial statements. A building constructed at the beginning of 2024 costing $1329900 has not been depreciated. The estimated useful life of the building is 30 years with no salvage value. Straight-line depreciation is used. Crane also used straight-line depreciation for tax purposes and properly included depreciation on its tax return. Income tax payable was also reported correctly at a tax rate of 20%. Income before tax and depreciation expenses in 2025 was $430000. What would be the 2025 net income if depreciation had been recorded properly? $385670 O $394536 O $308536 O $430000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Your answer is incorrect.
In 2025, Crane Company discovered an error while preparing its financial statements. A building constructed at the beginning of 2024
costing $1329900 has not been depreciated. The estimated useful life of the building is 30 years with no salvage value. Straight-line
depreciation is used, Crane also used straight-line depreciation for tax purposes and properly included depreciation on its tax return.
Income tax payable was also reported correctly at a tax rate of 20%. Income before tax and depreciation expenses in 2025 was
$430000.
What would be the 2025 net income if depreciation had been recorded properly?
$385670
O $394536
O $308536
O $430000
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