In 2025, Bailey Corporation discovered that equipment purchased on January 1, 2023, for $50,000 was expensed at

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In 2025, Bailey Corporation discovered that equipment purchased on January 1, 2023, for $50,000 was expensed at that time. The equipment should have been depreciated over 5 years, with no salvage value. The effective tax rate is 30%. Prepare Bailey’s 2025 journal entry to correct the error. Bailey uses straight-line depreciation.

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Intermediate Accounting

ISBN: 9781119790976

18th Edition

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

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