On July $1,2018,$ Matador purchased a plot of land for $$158,500,$ but the bookkeeper incorrectly classified it and depreciated it as a building. The bookkeeper determined it had a $$10,000$ salvage value and a $15-$year useful life and has used straight$-$line depreciation since the day of purchase. The bookkeeper discovered this mistake in $2022$ and has not recorded any depreciation for this asset in $2022.$ Determine the adjustment to ICO. Matador has a corporate tax rate of $30\%\mathrm{.}9,900**4rs=39,600**30\%=11,880$

$158,500-10,000=148,500$

$\frac{148,500}{15}=9,900$

$39,600-11,880=27,720$

Using the information in Question $7,$ determine the prior period adjustment to Retained Earnings that Matador will record in a journal entry for $2022.$ Matador has a corporate tax rate of $30\%.$