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a) The Company paid amounts totaling $122,000 to consultants throughout 2006 for an advertising campaign developed during the year. It is the Company's policy to

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a) The Company paid amounts totaling $122,000 to consultants throughout 2006 for an advertising campaign developed during the year. It is the Company's policy to expense the costs of all advertisements as of the first date the advertisements take place. The Company launched the campaign on December 29, 2006. The accountant mistakenly capitalized all advertising costs in its balance sheet. If this mistake is corrected, what would be the correct amounts for the following? Gross profit ? Selling, general and administrative expenses? Current assets? Retained earnings? Cash

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