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XYZ Company purchased equipment that cost $375,000 on January 1, 2019. The entire cost was recorded as an expense. The equipment had 9 year's useful
XYZ Company purchased equipment that cost $375,000 on January 1, 2019. The entire cost was recorded as an expense. The equipment had 9 year's useful life and a $15,000 residual value. XYZ Co. uses the straight-line method to account for depreciation expense. The error was discovered on December 10, 2021. XYZs net income for the year ended December 31, 2017, was understated by :
a- 335,000
b- 225,000
c-0
d- 375,000
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