In completing the adjusting entries for 2017 in early 2018,the internal auditor discovered that a patent,with an estimated eight year life that was registered in January,2017 had not been amortized.The patent cost $360,000.The income tax rate is 40%.What is the journal entry to correct the error?
A) Retained Earnings 45,000
B) Income Taxes Receivable 18,000 Retained Earnings 63,000
C) Income Taxes Payable 18,000 Retained Earnings 27,000
D) Patent 45,000

Question

In completing the adjusting entries for 2017 in early 2018,the internal auditor discovered that a patent,with an estimated eight year life that was registered in January,2017 had not been amortized.The patent cost $360,000.The income tax rate is 40%.What is the journal entry to correct the error?
A) Retained Earnings 45,000 
B) Income Taxes Receivable 18,000 Retained Earnings 63,000 
C) Income Taxes Payable 18,000 Retained Earnings 27,000 
D) Patent 45,000

Quizplus · Accepted Answer

The Answer of In completing the adjusting entries for 2017 in early 2018,the internal auditor discovered that a patent,with an estimated eight year life that was registered in January,2017 had not been amortized.The patent cost $360,000.The income tax rate is 40%.What is the journal entry to correct the error?
A) Retained Earnings 45,000 
B) Income Taxes Receivable 18,000 Retained Earnings 63,000 
C) Income Taxes Payable 18,000 Retained Earnings 27,000 
D) Patent 45,000

In Completing the Adjusting Entries for 2017 in Early 2018,the