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During the year - end 2 0 X 2 audit, Athens Sun Company's auditor discovered that the company had incorrectly recorded a patent purchased in
During the yearend X audit, Athens Sun Company's auditor discovered that the company had incorrectly recorded a patent
purchased in X as a inventory. The patent cost $ has an estimated useful life of years and no salvage value. The company
did not record amortization expense for the asset in X or X Athens Sun manutactures custom solar panels and uses the
specific identification inventory method. Based on this information, how should Athens Sum correct its X balance sheet for these
errors?
Increase retained earnings by $ increase patent by $ and decrease operating expenses by $
Increase X operating expenses by $ for and decrease retained earnings by $ and increase
patent by $
Increase retained earnings by $ and increase intangible assets by $
Decrease retained earnings by $ and decrease patent by $
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