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.