Question: In 2025, Pharoah Company discovered an error while preparing its financial statements. A building constructed at the beginning of 2024 costing $1260000 has not been
In 2025, Pharoah Company discovered an error while preparing its financial statements. A building constructed at the beginning of 2024 costing $1260000 has not been depreciated. The estimated useful life of the building is 30 years with no salvage value. Straight- line depreciation is used. Pharoah also used straight-line depreciation for tax purposes and properly included depreciation on its tax return. Income tax payable was also reported correctly at a tax rate of 20%. Income before tax and de What is the appropriate journal entry to record the prior period adjustmentpreciation expenses in 2025 was $360000
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