At the beginning of 2020, Armstead Corporation discovered that depreciation expense in the years prior to 2020
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At the beginning of 2020, Armstead Corporation discovered that depreciation expense in the years prior to 2020 was incorrectly calculated and recorded. For the years before 2020, total depreciation expense of $165,000 was recorded, whereas correct total depreciation expense was $75,000. The tax rate is 30%. Armstead follows IFRS and the deferred taxes method of accounting for income taxes. Prepare Armstead's 2020 journal entry with respect to the depreciation expense that was recorded in the years before 2020.
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Related Book For
Intermediate Accounting Volume 2
ISBN: 9781119497042
12th Canadian Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy
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