While Completing the Adjusting Entries for 2017 in Early 2018

question 47

Essay

While completing the adjusting entries for 2017 in early 2018, the internal auditor discovered that a trademark, with an estimated eight-year life that was registered on January 1, 2017 had not been amortized. The trademark cost $400,000. (The income tax rate is 40%.) The books are still open in 2017.
Required: Describe the steps to correct the error.

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Definitions:

Medtronic

A global healthcare solutions company known for its medical devices, technology, and services, including those for diagnosing and treating chronic conditions.

Market Segmentation

The practice of dividing a broad target market into subsets of consumers who have common needs, interests, and priorities, and then designing and implementing strategies to target them.

Market Aggregation

The practice of treating an entire market as a single entity by offering a single product or service to all customers, ignoring segmentation.

Gantt Chart

A visual project management tool that displays tasks or activities against time.