In 2020, Grouper Corporation discovered that equipment purchased on January 1, 2018, for $63,000 was expensed at that time. The equipment should have been depreciated over 5 years, with no salvage value. The effective tax rate is 30%. Grouper uses straight-line depreciation.

Prepare Grouper's 2020 journal entry to correct the error. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation Debit Credit

Enter an account titleEntry field with correct answer

Equipment

Enter a debit amountEntry field with correct answer

63,000

Enter a credit amountEntry field with correct answer

Enter an account titleEntry field with incorrect answer now contains modified data

Accounts

Enter a credit amountEntry field with incorrect answer

2,520

Enter an account titleEntry field with correct answer

Deferred Tax Liability

Enter a credit amountEntry field with incorrect answer

18,144

Enter an account titleEntry field with correct answer

Retained Earnings

Enter a credit amountEntry field with incorrect answer

19,656