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Financial & Managerial Accounting 3rd Edition by Charles Horngren,Harrison, Walter,Suzanne Oliver
Edition 3ISBN: 978-0132962339Financial & Managerial Accounting 3rd Edition by Charles Horngren,Harrison, Walter,Suzanne Oliver
Edition 3ISBN: 978-0132962339 Exercise 12
Ethics-capitalizing vs. expensing assets
Harrington Precision Parts repaired one of its Boeing 737 aircrafts at a cost of $150,000. Harrington Precision Parts erroneously capitalized this cost as part of the cost of the plane.
Requirements
1. How will this accounting error affect Harrington Precision Parts' net income Ignore depreciation.
2. Should the company correct the error or can it ignore the error to report more favorable earnings results
Harrington Precision Parts repaired one of its Boeing 737 aircrafts at a cost of $150,000. Harrington Precision Parts erroneously capitalized this cost as part of the cost of the plane.
Requirements
1. How will this accounting error affect Harrington Precision Parts' net income Ignore depreciation.
2. Should the company correct the error or can it ignore the error to report more favorable earnings results
Explanation
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2.
Step 1 Read the exercise.
Step 2 sho...
Financial & Managerial Accounting 3rd Edition by Charles Horngren,Harrison, Walter,Suzanne Oliver
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