Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

PLEASE ANSWER THIS WITHIN AN HOUR (by 11:30 PM EST) I WILL THUMBS UP IF CORRECT In 2012, Macky Company discovered an error while preparing

PLEASE ANSWER THIS WITHIN AN HOUR (by 11:30 PM EST) I WILL THUMBS UP IF CORRECT

In 2012, Macky Company discovered an error while preparing its financial statements. A building constructed at the beginning of 2011 costing $1449900 has not been depreciated. The estimated useful life of the building is 30 years with no salvage value. Straight-line depreciation is used. Macky also used straight-line depreciation for tax purposes and properly included depreciation on its tax return. Income tax payable was also reported correctly at a tax rate of 20%. Income before tax and depreciation expenses in 2012 was $550000.

What would be the 2012 net income if depreciation had been recorded properly?

A.) 550000

B.) 401336

C.) 511336

D.) 501670

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Life Audit

Authors: Michelle Moroney

1st Edition

978-0717184736

More Books

Students also viewed these Accounting questions

Question

5-8 What are the advantages and disadvantages of the BYOD movement?

Answered: 1 week ago