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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Proper net income computation
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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