Use the Following Information for Questions

question 53

Multiple Choice

Use the following information for questions.
In January 2012, Marcus Ltd.has installation costs of £9,000 on new machinery that were charged to Repair Expense.Other costs of this machinery of £30,000 were correctly recorded and have been depreciated using the straight-line method with an estimated life of 10 years and no residual value.At December 31,2012, Marcus decides that the machinery ha a remaining useful life of 15 years, starting with January 1,2012
-In 2012, Krasny Corporation discovered that equipment purchased on January 1,2010, for €52,500 was expensed at that time.The equipment should have been depreciated over 5 years, with no residual value.The effective tax rate is 30%.Krasny's 2012 journal entry to correct the error would include

• A)a credit to Equipment for €52,500
• B)a debit to Retained Earnings for €52,500.
• C)a credit to Retained Earnings for €22,050.
• D)a credit to Deferred Tax Liability for €15,750.

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Definitions:

Gender Differences

Variations in characteristics, behaviors, and roles traditionally associated with men and women, influenced by social, cultural, and biological factors.

Individual Difference

variations among people in their qualities, abilities, or characteristics.

Large Divisions

Significant differences or disagreements among groups or individuals.

Negotiation

A process where two or more parties communicate and compromise to reach an agreement beneficial to all involved.