In 2014 bailey corporation discovered that equipment, Ask an Expert

Accounting

In 2014, Bailey Corporation discovered that equipment purchased on January 1, 2012, for $45,000 was expensed at that time. The equipment should have been depreciated over 5 years, with no salvage value. The effective tax rate is 31%.

Prepare Bailey's 2014 journal entry amounts to correct the error.

***Please show work. I have listed the accounts below. Thank you.

Account Titles Debit Credit

Equipment

Deferred Tax Liability

Retained Earnings

Accumulated Depreciation - Equipment

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9947983

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