In 20X2, the controller of the Green Company discovered that 20X1 depreciation expense was overstated by $40,000,
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Question:
In 20X2, the controller of the Green Company discovered that 20X1 depreciation expense was overstated by $40,000, a material amount. Assuming an income tax rate of 25%, the prior period adjustment to 20X2 beginnings retained would be:
Multiple Choice
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$0
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$30,000 debit.
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$30,000 credit.
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All of these answer choices are incorrect.
Expert Answer:
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