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:

Disposition-based

Pertains to characteristics or tendencies inherent in an individual that influence behavior or attitudes.

Trust

The firm belief in the reliability, truth, ability, or strength of someone or something, often seen as foundational in relationships and organizations.

Chain of Command

A system in organizations where authority and commands flow downward from the top through a series of executive positions or military ranks where each person is responsible to a superior.

Affect-based

Relating to, arising from, or influencing emotions or feelings.