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:

Generation Y

Also known as Millennials, the demographic cohort following Generation X, typically born between the early 1980s and mid-1990s.

Generation Z

Refers to the demographic cohort following millennials, typically born between the late 1990s and early 2010s.

Cultural Ageism

Discrimination or prejudice against individuals based on their age, particularly within cultural contexts or practices, leading to stereotypes and marginalization.

Ephebophobic

Having an irrational fear of youth or young people.