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In 2021, internal auditors discovered that PKE Displays, Inc. had debited an expense account for the $359,000 cost of equipment purchased on January 1, 2018.

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In 2021, internal auditors discovered that PKE Displays, Inc. had debited an expense account for the $359,000 cost of equipment purchased on January 1, 2018. The equipment's life was expected to be five years with no residual value. Straight-line depreciation is used by PKE Required: 1. Determine the cumulative effect of the error on net income over the three-year period from 2018 through 2020, and on retained earnings by the end of 2020. 2. Prepare the correcting entry assuming the error was discovered in 2021 before the adjusting and closing entries. (Ignore income taxes) 3. Assume instead that the equipment was disposed of in 2022 and the original error was discovered in 2023 after the 2022 financial statements were issued. Prepare the correcting entry in 2023 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Assume instead that the equipment was disposed of in 2022 and the original error was discovered in 2023 after the 2022 financial statements were issued. Prepare the correcting entry in 2023. (If no entry is required for a transaction event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the correcting entry for errors discovered Event General Journal Debit Credit On May 28, 2021. Pesky Corporation acquired all of the outstanding common stock of Harman, Inc., for $580 million. The fair value of Harman's identifiable tangible and intangible assets totaled $624 million, and the fair value of liabilities assumed by Pesky was $166 million Pesky performed a goodwill impairment test at the end of its fiscal year ended December 31, 2021. Management has provided the following information: Fair value of Harman, Inc. Fair value of Harman's net assets (excluding goodwill) Book value of Harman's net assets (including goodwill) $5621llion 500 million 582 Billion Required: 1. Determine the amount of goodwill that resulted from the Harman acquisition 2. Determine the amount of goodwill impairment loss that Pesky should recognize at the end of 2021, if any. 3. If an impairment loss is required, prepare the journal entry to record the loss. erences Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Determine the amount of goodwill that resulted from the Harman acquisition and the amount of goodwill impairment loss that Pesky should recognize at the end of 2021, any. (Negative amounts should be indicated by a minus sign. Enter your answers in millions (le, 10,000,000 should be entered as 10). Goodwill Goodwill impamentos $ S 122 milion 62 milion Regard Reg 3 >

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