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Home Q & A Board Other Fields Homework Help Business Accounting
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mewdie mewdie
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5 years ago
In completing the adjusting entries for 2017 in early 2018, the internal auditor discovered that a patent, with an estimated eight year life that was registered in January, 2017 had not been amortized. The patent cost $370,000. The income tax rate is 30%. What is the journal entry to correct the error?

A)
Account DebitCredit
Amortization Expense 46,250
     Retained Earnings46,250

B)
AccountDebitCredit
Patent 46,250
Income Taxes Receivable13,875
     Retained Earnings60,125

C)
AccountDebitCredit
Amortization Expense46,250
     Income Taxes Payable13,875
     Retained Earnings32,375

D)
AccountDebitCredit
Amortization Expense46,250
     Patent46,250
Textbook 
Intermediate Accounting

Intermediate Accounting


Edition: 1st
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Dessa D.Dessa D.
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5 years ago
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mewdie Author
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