Question: Practice Exercise 8 At the end of 2019, while preparing its financial statements, Blossom Ltd. discovered an error in its accounting records. A truck with

Practice Exercise 8

At the end of 2019, while preparing its financial statements, Blossom Ltd. discovered an error in its accounting records. A truck with an original cost of $13,000, a service life of 4 years, and a residual value of $3,400 was expensed when it was purchased at the beginning of 2018. The company was subject to an income tax rate of 40%. Blossom used the straight-line method of depreciation for vehicles and follows ASPE. Prepare the journal entries to correct the error and record depreciation for 2019.

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