Question
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
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