Cumulative effect of the error

Assignment Help Accounting Basics
Reference no: EM13131726

Link Co. purchased machinery that cost $810,000 on January 4, 2009. The entire cost was recorded as an expense. The machinery has a nine-year life and a $54,000 residual value. The error was discovered on December 20, 2011. Ignore income tax considerations.

Link's income statement for the year ended December 31, 2011, should show the cumulative effect of this error in the amount of:

A) $726,000.
B) $642,000.
C) $558,000.
D) $0.

Reference no: EM13131726

Questions Cloud

What is the expected freezing point depression : If 0.0050 mol of methyl acetate is dissolved in 10.0 grams of tert-butanol, what is the expected freezing point depression in celcius degrees?
Leadership : leadership
Draw a sketch to show proportion of runners : Mean of 61 minutes and a standard deviation of 9 minutes. Find the proportion of runners who take more than 70 minutes to finish. Draw a sketch to show this proportion.
Calculate equivalent units for conversion costs : The ending inventory was 80% completed for materials and 70% completed for conversion costs. Calculate equivalent units for conversion costs for the month in the first processing department.
Cumulative effect of the error : Link's income statement for the year ended December 31, 2011, should show the cumulative effect of this error in the amount of:
How much tax revenue will the freedmanian government : How much tax revenue will the Freedmanian government collect from a typical consumer? Use a graph with medicine on the horizontal axis and tequila on the vertical axis to explain. Clearly label budget lines and indifference curves.
Calculate budgeted direct materials purchases for the third : he company’s policy is to begin each quarter with an inventory of direct materials equal to 30 percent of that quarter’s direct material requirements. Calculate budgeted direct materials purchases for the third quarter.
How much of the proceeds is taxable to russ : at the time, russ has paid $14,000 in premiums, and he collcts the $100,000 face value. how much of the proceeds is taxable to Russ?
Find the probability that a worker pays more : What percentage of the workers is paying between $1800 and $2400 per year toward the family health coverage premium? What is the probability that a worker pays more than $2500 towards the family health coverage premium?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Sources of gaap

Identify and describe the sources of generally accepted accounting principles. Identify source hierarchy and explain why the hierarchy is important.

  Realized gain on transaction

Alvin owned a building located in Kansas that he rented to a local business-Alvin built a new building at a cost of $400,000. What is Alvin’s realized gain (loss) on this transaction?

  Explain the accounting treatments for notes

Fixed rate notes and bonds have interesting dynamics that respond to various economic factors affecting the market or fair value of those instruments. There are several potential results from the issuance of fixed rate instruments.

  Description of debits and credits

What are debits and credits? In your opinion, why do accountants debit asset accounts to increase them but credit liability accounts to increase them?

  Determining time value of money

You just turned 25. you plan on saving a equal amount in your 401K at the of each year for 40 years (your 65th birthday). You expect to earn 9% pa during this time frame.

  Calculate the amount of estate tax

Roland had a taxable estate of $5.5 million when he died this year. (Reference the tax rate schedule in Exhibit 25-1 and the Unified Credit schedule in Exhibit 25-5 to answer this problem. Omit the "tiny_mce_markerquot; sign in your response).

  Uniform partnership act of 1997

What is the Uniform Partnership Act of 1997 and what is the relevance to partnership accounting and what types of items are typically included in the partnership agreement? Explain.

  Calculate total you will pay in income and social security

Assuming that you are single and receive no deduction or any other credits, Mr. Wilson has asked you to calculate the total you will pay in income, Social Security, and Medicare taxes for a salary of $94,000.

  How is holly taxed on the distribution

At the beginning of the year, Penguin Corporation (a calendar year taxpayer) has accumulated E & P of $55,000. During the year, Penguin incurs a $36,000 loss from operations that accrues ratably. On October 1, Penguin distributes $40,000 in cash t..

  Preparing a four-column bank reconciliation

By preparing a four-column bank reconciliation ("proof of cash") at year-end, an auditor will generally not be able to detect:

  Computing regular corporate tax and corporate amt

What is Gigantic Corporation's net tax liability if its taxable income is $325,000 and it has a general business credit of $125,000?

  What is the target net income

A company requires $1,020,000 in sales to meet its net income target. Its contribution margin is 30%, and fixed costs are $180,000. What is the target net income?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd