Explain how each of the following items should be reported by a corporation:
(1)The accounting department discovered that an entry was made last year to Insurance Expense instead of to Prepaid Insurance.The after-tax effect of the charge to Insurance Expense was $5,000.
(2)The accounting department determined the depreciable lives of equipment will be five years instead of the original estimate of seven years.

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The Answer of Explain how each of the following items should be reported by a corporation:
(1)The accounting department discovered that an entry was made last year to Insurance Expense instead of to Prepaid Insurance.The after-tax effect of the charge to Insurance Expense was $5,000.
(2)The accounting department determined the depreciable lives of equipment will be five years instead of the original estimate of seven years.

Explain How Each of the Following Items Should Be Reported