In completing the adjusting entries for 2021 in early 2022, the internal auditor discovered that a patent, with an estimated eight year life that was registered in January, 2021 had not been amortized. The patent cost $370,000. The income tax rate is 40%. The books are still open in 2021. What is the journal entry to correct the error? Group of answer choices Amortization Expense-Patent 46,250 Retained Earnings46,250 Patent 46,250 Income Taxes Receivable18,500 Retained Earnings 64,750 Amortization Expense-Patent 46,250 Income Taxes Payable18,500 Retained Earnings 27,750 Amortization Expense-Patent 46,250 Patent 46,250 PreviousNext

In completing the adjusting entries for 2021 in early 2022, the internal auditor discovered that a patent, with an estimated eight year life that was registered in January, 2021 had not been amortized. The patent cost $370,000. The income tax rate is 40%. The books are still open in 2021. What is the journal entry to correct the error? Group of answer choices Amortization Expense-Patent 46,250 Retained Earnings46,250 Patent 46,250 Income Taxes Receivable18,500 Retained Earnings 64,750 Amortization Expense-Patent 46,250 Income Taxes Payable18,500 Retained Earnings 27,750 Amortization Expense-Patent 46,250 Patent 46,250 PreviousNext

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter3: The Basics Of Record Keeping And Financial Statement Preparation: Income Statement

Section: Chapter Questions

Problem 19E

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At the end of 2022, Neck Company discovered that patent amortization expense of $222,000 had not been recorded in 2021 or 2022. If Neck has not closed the books for 2022, the journal entry to correct the error will Answer a. a debit to Retained Earnings and a credit to Patent for $444,000. b. a debit to Amortization Expense and a credit to Patent for $444,000. c. a debit to Amortization Expense and a credit to Patent for $222,000. d. include debits to Retained Earnings and Amortization Expense of $222,000 and a credit to Patent for $444,000.
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