Question 37 Not yet answered Marked out of LOD F Flag question On 1 January 2020, KINSALE COMPANY discovered that a truck purchased on January 1, 2017 for $1,000,000 was expensed at the time the truck should have been depreciated on a straight-line basis assuming a $200,000 estimated residual value and a five-yoor life. The effective tax rate for KINSALE COMPANY is 60%. KINSALE COMPANY's Journal Entry on 1 January 2020 to correct this error will include a credit to Retained Earnings for which of the following amounts? Select one. a. $200,000 b. $187,500 C. None of these answers d. $200,000 e $400,000 Previous page Next page