In completing the adjusting entries for 2021 in early 2022, the internal auditor discovered that a patent, with an estimated eight year life that was registered in January, 2021 had not been amortized. The patent cost $370,000. The income tax rate is 40%. The books are still open in 2021. What is the journal entry to correct the error? Group of answer choices Amortization Expense-Patent 46,250 Retained Earnings46,250 Patent 46,250 Income Taxes Receivable18,500 Retained Earnings 64,750 Amortization Expense-Patent 46,250 Income Taxes Payable18,500 Retained Earnings 27,750 Amortization Expense-Patent 46,250 Patent 46,250 PreviousNext
In completing the adjusting entries for 2021 in early 2022, the internal auditor discovered that a patent, with an estimated eight year life that was registered in January, 2021 had not been amortized. The patent cost $370,000. The income tax rate is 40%. The books are still open in 2021. What is the journal entry to correct the error? Group of answer choices Amortization Expense-Patent 46,250 Retained Earnings46,250 Patent 46,250 Income Taxes Receivable18,500 Retained Earnings 64,750 Amortization Expense-Patent 46,250 Income Taxes Payable18,500 Retained Earnings 27,750 Amortization Expense-Patent 46,250 Patent 46,250 PreviousNext
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter22: Accounting For Changes And Errors.
Section: Chapter Questions
Problem 16E: Dudley Company failed to recognize the following accruals. It also recorded the prepaid expenses and...
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Question
In completing the adjusting entries for 2021 in early 2022, the internal auditor discovered that a patent, with an estimated eight year life that was registered in January, 2021 had not been amortized. The patent cost $370,000. The income tax rate is 40%. The books are still open in 2021. What is the journal entry to correct the error?
Group of answer choices
Retained Earnings46,250
Income Taxes Receivable18,500
Income Taxes Payable18,500
Patent 46,250
| Amortization Expense-Patent | 46,250 | |
| Patent | 46,250 | |
| 64,750 |
| Amortization Expense-Patent | 46,250 | |
| Retained Earnings | 27,750 |
| Amortization Expense-Patent | 46,250 | |
PreviousNext
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