Question 4 3 pts Continuing with the information presented in #1 above, Pitchfork has income from Continuing Operations (ICO) of $1,700,000 and a corporate tax rate of 30%. Determine if ICO should be adjusted based on the following information: 4. On April 1, 2019 Pitchfork paid $24,000 for two years rent on office space and at the time debited Rent Expense. No adjusting or correcting entries were made for this transaction in 2019 or 2020 a. To correct I.C.O for 2020, the correct Rent Expense (after tax) would be: If you want to increase I.C.0, enter your answer as a positive number. If you want to decreasel.co. enter your answer as a negative number using parenthesis. b. Determine the amount of the Prior Period Adjustment to be reported on the Retained Earnings Statement to correct the Beginning Balance at Jan 1, 2020: If you want to increase the Beg. Bal of R.E, enter your answer as a positive number. If you want to decrease the Beg Bal, enter your answer as a negative number using parenthesis D Question 1 1.4 pts Pitchfork, Inc. is preparing its 2020 financial statements. The company's accountant calculated Income from Continuing Operations to be $1,700,000, but upon further review is not certain this number is accurate. Pitchfork has a corporate income tax rate of 30%. Additionally, the company reports only one year of financial data on the face of the financial statements. All amounts listed are pretax unless otherwise noted. After reviewing the following information, determine the appropriate adjustments, if any, to Income from Continuing Operations. Once you have determined the CORRECT Income from Continuing Operations, complete the remainder of the Income Statement for reporting EPS 1. On January 1, 2017, Pitchfork purchased a machine for $180,000 with a salvage value of $20,000 and useful life of eight years which was depreciated using the straight-line method. During 2020, Pitchfork decided to change to double-declining-balance method. The $1,700,000 Income from Continuing Operations had already been calculated using the straight-line depreciation method. Determine the correct ADJUSTMENT to Income from Continuing Operations (ICO) for Depreciation Expense in 2020 if you need to increase ICO, enter your answer as a positive number if you need to decrease ICO, enter your answer as a negative number using parenthesis. If you determine that Depreciation Expense for 2020 was calculated correctly and therefore does not require an adjustment to ico enter NE Do not use dollar signs or commas when entering your answer Adjustment for Depreciation Expense (2020): S[Blank_11
