Question
On January 1, 2017, Ivanhoe Corp. acquired a machine at a cost of $800000. It is to be depreciated on the straight-line method over a
On January 1, 2017, Ivanhoe Corp. acquired a machine at a cost of $800000. It is to be depreciated on the straight-line method over a 5-year period with no residual value. Because of a bookkeeping error, no depreciation was recognized in Ivanhoe's 2017 financial statements. The oversight was discovered during the preparation of Ivanhoe's 2018 financial statements. Depreciation expense on this machine for 2018 should be
| A. | $0. |
| B. | $160000. |
| C. | $320000. |
| D. | $200000. |
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The Internal Auditing Handbook
Authors: K. H. Spencer Pickett
3rd Edition
0470518715, 978-0470518717
