Woods, Inc. purchased a new engine for a long-distance truck in January, 2021. The engine cost $240,000 and should give the truck an additional 500,000 miles of life. Inadvertently, the engine was charged to truck repairs expense. The error was found in December, 2022. The company records depreciation based on miles driven with no salvage value. Miles driven in 2021 were 80,000 and 70,000 in 2022. Which one of the following entries properly corrects all the errors through December 31, 2022? (Ignore income taxes.) (Round any intermediate calculations and your final answers to the nearest dollar.) Group of answer choices Truck 240,000 Depreciation Expense--Truck (2022) 33,600 Accumulated Depreciation -Truck 72,000 Retained Earnings 201,600 Retained Earnings 201,600 Depreciation Expense (2021) -Truck 38,400 Truck 240,000 Truck 240,000 Accumulated Depreciation - Truck33,600 Retained Earnings 206,400 Truck 240,000 Depreciation Expense (2021) -Truck 38,400 Retained Earnings 278,400

Woods, Inc. purchased a new engine for a long-distance truck in January, 2021. The engine cost $240,000 and should give the truck an additional 500,000 miles of life. Inadvertently, the engine was charged to truck repairs expense. The error was found in December, 2022. The company records depreciation based on miles driven with no salvage value. Miles driven in 2021 were 80,000 and 70,000 in 2022. Which one of the following entries properly corrects all the errors through December 31, 2022? (Ignore income taxes.) (Round any intermediate calculations and your final answers to the nearest dollar.) Group of answer choices Truck 240,000 Depreciation Expense--Truck (2022) 33,600 Accumulated Depreciation -Truck 72,000 Retained Earnings 201,600 Retained Earnings 201,600 Depreciation Expense (2021) -Truck 38,400 Truck 240,000 Truck 240,000 Accumulated Depreciation - Truck33,600 Retained Earnings 206,400 Truck 240,000 Depreciation Expense (2021) -Truck 38,400 Retained Earnings 278,400

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 15E: The following are independent errors: a. In January 2019, repair costs of 9,000 were debited to the...

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