In December of 2018, XL Computer's internal auditors discovered that office equipment costing $800,000 was charged to expense in 2016. The asset had an expected life of 10 years with no residual value. XL would have recorded a half year of depreciation in 2016.
Required:
Prepare the necessary correcting entry that would be made in 2018 (ignore income taxes), and the entry to record depreciation for 2018.

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The Answer of In December of 2018, XL Computer's internal auditors discovered that office equipment costing $800,000 was charged to expense in 2016. The asset had an expected life of 10 years with no residual value. XL would have recorded a half year of depreciation in 2016.
Required:
Prepare the necessary correcting entry that would be made in 2018 (ignore income taxes), and the entry to record depreciation for 2018.

In December of 2018, XL Computer's Internal Auditors Discovered That