In 2008, John Hiatt Corporation discovered that equipment purchased on January 1, 2006, for $75,000 was expensed

Question:

In 2008, John Hiatt discovered that equipment purchased on January 1, 2006, for $75,000 was expensed at that time. The equipment should have been depreciated over 5 years, with no . The effective tax rate is 30%. Prepare Hiatt’s 2008 journal entry to correct the error.

Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...