Question
AFTER all December 31, 2020 year-end adjusting entries had been completed but before the 2020 income tax entries, Hlaing Inc. became aware of the following:
AFTER all December 31, 2020 year-end adjusting entries had been completed but before the 2020 income tax entries, Hlaing Inc. became aware of the following:
->Hlaing acquired equipment on January 1, 2017 at a cost of $250,000.The equipment was charged to the Land account in error and has not been depreciated. The equipment has a five-year useful life with no residual value and the straight-line method is used.
Hlaing Inc.'s 2019 books are closed and they have not released their 2020 financial statements. Hlaing is subject to a tax rate of 30%.
Required:Prepare the December 31, 2020 adjusting journal entry(ies) for Hlaing Inc. to correct the accounts, if necessary, for the item above.Show all calculations.
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