15. Pane uses the first-in, first-out (FIFO) cost flow assumption. At year-end, the net realizable value of Pane's inventory was $28,000 below its original cost. Pane uses the direct method to write down inventory.

16. Pane discovers that payment of $100,000 for the current year's rent (Jan 1 Dec 31, 2018) was mistakenly recorded as rent expense when the company prepaid it last December, 2017. It should have been recorded as Prepaid Rent. Make the appropriate (a) journal entries to correct the error as of the beginning of the current year and (b) the adjusting entry to recognize the expense for the current year. Note that the adjustment to the beginning Retained Earnings balance should be net of tax. Hint: Credit the Income Tax Payable account for the $30,000 tax effect.

17. Pane records depreciation and amortization expense. Use the nearest whole month convention, and the double declining balance method for depreciation and the whole-year convention and the straight-line method for amortization. Note that all assets on the books at the beginning of the year are fully depreciated. Use the accumulated depreciation and accumulated amortization accounts. (See Transaction #1, #2, and #8).

18. Pane purchased a subsidiary many years ago that produces various specialty medical glass products and named it PaneMeds, which invested heavily in an artificial jaw replacement, GlassJaw. Due to inferior durability, the market reacted negatively to the product and Pane decided to review the PaneMeds operating segment for impairment to goodwill. Book value $5,700,000 Goodwill (included in the book value) $530,000 Fair value $4,515,000