Question: 2 Points In year 4, internal auditors discovered that Cistern Displays, Inc., had debited an expense account for the $400,000 cost of equipment purchased on

2 Points In year 4, internal auditors discovered that Cistern Displays, Inc., had debited an expense account for the $400,000 cost of equipment purchased on January 1, year 1. The equipment's life was expected to be five years with no residual value. Straight-line depreciation is used by Cistern. Required: 1. Prepare the appropriate correcting entry assuming the error was discovered in year 4 before the adjusting and closing entries. (Ignore income taxes.) 2. Assume the error was discovered in year 6 after the year 5 financial statements are issued. Prepare the appropriate correcting entry

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