Cullumber Co. purchased machinery that cost $3600000 on January 4, 2019. The entire cost was recorded as an expense. The machinery has a 9-year life and a $260000 residual value. The error was discovered on December 20, 2021. Ignore income tax considerations. Cullumber's income statement for the year ended December 31, 2021, should show the cumulative effect of this error in the amount of $0. $2857778. $2800000. $2420000.
Cullumber Co. purchased machinery that cost $3600000 on January 4, 2019. The entire cost was recorded as an expense. The machinery has a 9-year life and a $260000 residual value. The error was discovered on December 20, 2021. Ignore income tax considerations. Cullumber's income statement for the year ended December 31, 2021, should show the cumulative effect of this error in the amount of $0. $2857778. $2800000. $2420000.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter22: Accounting For Changes And Errors.
Section: Chapter Questions
Problem 10MC: Shannon Corporation began operations on January 1, 2019. Financial statements for the years ended...
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Cullumber Co. purchased machinery that cost $3600000 on January 4, 2019. The entire cost was recorded as an expense. The machinery has a 9-year life and a $260000 residual value. The error was discovered on December 20, 2021. Ignore income tax considerations.
Cullumber's income statement for the year ended December 31, 2021, should show the cumulative effect of this error in the amount of
Cullumber's income statement for the year ended December 31, 2021, should show the cumulative effect of this error in the amount of
$0.
$2857778.
$2800000.
$2420000.
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