In December of 2018, XL Computer's Internal Auditors Discovered That

question 29

Essay

In December of 2018, XL Computer's internal auditors discovered that office equipment costing $800,000 was charged to expense in 2016. The asset had an expected life of 10 years with no residual value. XL would have recorded a half year of depreciation in 2016.
Required:
Prepare the necessary correcting entry that would be made in 2018 (ignore income taxes), and the entry to record depreciation for 2018.

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Definitions:

Learning Language

The process by which individuals acquire the ability to perceive, produce, and use words to understand and communicate with others.

Experience-dependent Development

The process by which individual experiences, such as learning, directly influence and shape the development of neural connections and behavior.

Vocal Cords

The folds of tissue in the larynx responsible for producing sound, including speech.

Habituation

The psychological process of gradually becoming accustomed to a stimulus after repeated exposure, leading to a decrease in response.