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4. On January 1, 2020, James Co. purchased an asset that cost $50,000 (no estimated residual value, estimated useful life 8 years, straight line depreciation

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4. On January 1, 2020, James Co. purchased an asset that cost $50,000 (no estimated residual value, estimated useful life 8 years, straight line depreciation is used). An error was made because the total cost amount was debited to an expense account for 2020 and no depreciation on it was recorded. Pretax income for 2020 was $42,000. The correct pretax income for 2020 was a. $35,750 b. $48,250 c. $85,750 d. $92,000 e. None of the above is correct

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