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In 2014, Bailey Corporation discovered that equipment purchased on January 1, 2012, for $45,000 was expensed at that time. The equipment should have been depreciated over 5 years, with no salvage value. The effective tax rate is 31%. Prepare Bailey's 2014 journal entry amounts to correct the error.
***Please show work. I have listed the accounts below. Thank you.
Account Titles Debit Credit
Equipment
Deferred Tax Liability
Retained Earnings
Accumulated Depreciation - Equipment
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