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help Prepare a schedule showing the determination of corrected income before taxes for 2020 and 2021. (Enter negative amounts using either a negative sign preceding
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Prepare a schedule showing the determination of corrected income before taxes for 2020 and 2021. (Enter negative amounts using either a negative sign preceding the number e.g. 15,000 or parentheses e.g. (15,000). Round answers to 0 decimal places, e.g. 125.) Current Attempt in Progress The before-tax income for Marin Co. for 2020 was $103,000 and $82,800 for 2021 . However, the accountant noted that the following errors had been made: 1. Sales for 2020 included amounts of $42,000 which had been received in cash during 2020 , but for which the related products were delivered in 2021. Title did not pass to the purchaser until 2021. 2. The inventory on December 31,2020 , was understated by $8,300. 3. The bookkeeper in recording interest expense for both 2020 and 2021 on bonds payable made the following entry on an annual basis. Interest Expense 15,600 Cash 15,600 The bonds have a face value of $260,000 and pay a stated interest rate of 6%. They were issued at a discount of $16,000 on January 1, 2020, to yield an effective-interest rate of 7%. (Assume that the effective-yield method should be used.) 4. Ordinary repairs to equipment had been erroneously charged to the Equipment account during 2020 and 2021. Repairs in the amount of $9,400 in 2020 and $9,100 in 2021 were so charged. The company applies a rate of 10% to the balance in the Equipment account at the end of the year in its determination of depreciation charges. Prepare a schedule showing the determination of corrected income before taxes for 2020 and 2021. (Enter negative amounts using Prepare a schedule showing the determination of corrected income before taxes for 2020 and 2021. (Enter negative amounts using either a negative sign preceding the number e.g. 15,000 or parentheses e.g. (15,000). Round answers to 0 decimal places, e.g. 125.) eTextbook and Media Attempts: 1 of 3 used Prepare a schedule showing the determination of corrected income before taxes for 2020 and 2021. (Enter negative amounts using either a negative sign preceding the number e.g. 15,000 or parentheses e.g. (15,000). Round answers to 0 decimal places, e.g. 125.)Step by Step Solution
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