Kentucky Enterprises purchased a machine on January 2, 2019, at a cost of P120,000. An additional P50,000 was spent for installation, but this amount was charged erroneously to repairs expense. The machine has a useful life of five years and a residual amount of P20,000. As a result of the error, O 2019 income was understated by P50,000. O Retained carnings at December 31, 2020, was understated by P30.000 and 2020 income was overstated by P10.00. O Retained earnings at December 31, 2020, was understated by P30,00 and 2020 income was overstated by P6.00O. O Retained earnings at December 31, 2020, was understated by P38,000 and 2020 incomc was overstated by P6.00.
Kentucky Enterprises purchased a machine on January 2, 2019, at a cost of P120,000. An additional P50,000 was spent for installation, but this amount was charged erroneously to repairs expense. The machine has a useful life of five years and a residual amount of P20,000. As a result of the error, O 2019 income was understated by P50,000. O Retained carnings at December 31, 2020, was understated by P30.000 and 2020 income was overstated by P10.00. O Retained earnings at December 31, 2020, was understated by P30,00 and 2020 income was overstated by P6.00O. O Retained earnings at December 31, 2020, was understated by P38,000 and 2020 incomc was overstated by P6.00.
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
Chapter11: Depreciation, Depletion, Impairment, And Disposal
Section: Chapter Questions
Problem 14P: Hunter Company purchased a light truck on January 2, 2019 for 18,000. The truck, which will be used...
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