Problem 1 In 20x6, after the financial statements for 20x5 were published, it was discovered that equipment costing $200,000, purchased on January 2, 20x4, was charged to the land account in error. The equipment belongs to class 8 (20%) for CCA purposes. The company depreciates its equipment on a straight-line basis over 8 years. There is no residual value. The tax rates for 20x4 and 20x5 were 35% and 33%, respectively. At the end of 20x5, the federal government enacted the 20x6 tax rate at 32%. Required Prepare the adjusting journal entries that would be recorded in 20x6 to adjust the accounts at the beginning of 20x6