On January 1, 2020- D mpany purchased a machine that cost $72,000 and had no estimated salvage value. The estimated useful life of the asset is 8 years and straight-line depreciation is used by the company for all machines used in the business. An error was made in 2020 because the total amount of the asset's cost was debited to an expense account for 2020 an no depreciation was recorded. Net income for 2020 as reported was $140,000. What is the proper amount of net income that should have been reported in 2020?
On January 1, 2020- D mpany purchased a machine that cost $72,000 and had no estimated salvage value. The estimated useful life of the asset is 8 years and straight-line depreciation is used by the company for all machines used in the business. An error was made in 2020 because the total amount of the asset's cost was debited to an expense account for 2020 an no depreciation was recorded. Net income for 2020 as reported was $140,000. What is the proper amount of net income that should have been reported in 2020?
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 11E: On January 1, 2014, Klinefelter Company purchased a building for 520,000. The building had an...
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Proper net income computation
![On January 1, 2020-De
estimated salvage value. The estimated useful life of the asset is 8 years and straight-line
depreciation is used by the company for all machines used in the business. An error was made in
Gempany purchased a machine that cost $72,000 and had no
2020 because the total amount of the asset's cost was debited to an expense account for 2020 and
no depreciation was recorded. Net income for 2020O as reported was $140,000. What is the proper
amount of net income that should have been reported in 2020?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F37e184dd-799c-4209-8f00-958552fcd64b%2Fafb305d9-b3ef-479c-839e-1fcadb96754e%2Fhkkypvo_processed.jpeg&w=3840&q=75)
Transcribed Image Text:On January 1, 2020-De
estimated salvage value. The estimated useful life of the asset is 8 years and straight-line
depreciation is used by the company for all machines used in the business. An error was made in
Gempany purchased a machine that cost $72,000 and had no
2020 because the total amount of the asset's cost was debited to an expense account for 2020 and
no depreciation was recorded. Net income for 2020O as reported was $140,000. What is the proper
amount of net income that should have been reported in 2020?
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