In 2014, Peter received a $5,000 bonus computed based on a percentage of profits In 2015, Peter's employer determined that 2014 profits have been incorrectly computed, and Peter has to refund the $5,000. Under the Claim of Right Doctrine, how is this event treated in 2014 and 2015?
In 2014, Peter received a $5,000 bonus computed based on a percentage of profits In 2015, Peter's employer determined that 2014 profits have been incorrectly computed, and Peter has to refund the $5,000. Under the Claim of Right Doctrine, how is this event treated in 2014 and 2015?
Chapter16: Accounting Periods And Methods
Section: Chapter Questions
Problem 20CE
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Transcribed Image Text:In 2014, Peter received a $5,000 bonus
computed based on a percentage of profits.
In 2015, Peter's employer determined that
2014 profits have been incorrectly
computed, and Peter has to refund the
$5,000. Under the Claim of Right Doctrine,
how is this event treated in 2014 and 2015?
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