Refer to the situation described in BE 20-4. Suppose Irwin has been using the straight-line method and switches to the sum-of-the-years'-digits method. Ignoring income taxes, what journal entry(s) should Irwin record relating to the machine for 2011?
Answer to relevant QuestionsThree programmers at Feenix Computer Storage, Inc., write an operating systems control manual for Hill-McGraw Publishing, Inc., for which Feenix receives royalties equal to 12% of net sales. Royalties are payable annually on ...In 2011, the internal auditors of Development Technologies, Inc. discovered that (a) 2010 accrued wages of $2 million were not recognized until they were paid in 2011 and (b) A $3 million purchase of merchandise in 2011 was ...The Long Island Construction Company has used the completed contract method of accounting for construction contracts. At the beginning of 2011, the company decides to change to the percentage-of-completion method for ...Bronson Industries reported a deferred tax liability of $8 million for the year ended December 31, 2010, related to a temporary difference of $20 million. The tax rate was 40%. The temporary difference is expected to reverse ...For each of the following inventory errors occurring in 2011, determine the effect of the error on 2011's cost of goods sold, net income, and retained earnings. Assume that the error is not discovered until 2012 and that a ...
Post your question