On January 2, 2014, Cain, Inc. agreed to pay its newly hired chief financial officer $550,000 under
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On January 2, 2014, Cain, Inc. agreed to pay its newly hired chief financial officer\ $550,000 under a deferred compensation arrangement. Cain should have recorded this\ expense in its income statement for the year ended December 31, 2014 but did not do\ so. Cains reported income tax expense would have been $125,000 lower in 2014 had\ the company properly accrued this deferred compensation.\ In its December 31, 2015 financial statements, by what amount should Cain adjust the\ beginning balance of retained earnings (further note if retained earnings should be\ debited or credited)?
Related Book For
Intermediate Accounting
ISBN: 978-0176509736
10th Canadian Edition, Volume 1
Authors: Donald Kieso, Jerry Weygandt, Terry Warfield, Nicola Young,
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