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At the beginning of 2018, FECC Corporation had discovered that the depreciation expense in the years prior to 2018 was incorrectly calculated and recorded. For
At the beginning of 2018, FECC Corporation had discovered that the depreciation expense in the years prior to 2018 was incorrectly calculated and recorded. For the years before 2018, total depreciation expense of $165,000 was recorded, whereas correct total depreciation expense was $75,000. The tax rate is 30%. FECC follows IFRS and the deferred taxes method of accounting for income taxes.
Required: 1) Prepare FECCs 2017 journal entry with respect to the depreciation expense that was recorded in the years prior to 2018.
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