In Completing the Adjusting Entries for 2017 in Early 2018,the

question 104

Multiple Choice

In completing the adjusting entries for 2017 in early 2018,the internal auditor discovered that a patent,with an estimated eight year life that was registered in January,2017 had not been amortized.The patent cost $360,000.The income tax rate is 40%.What is the journal entry to correct the error?

• A) Retained Earnings 45,000
• B) Income Taxes Receivable 18,000 Retained Earnings 63,000
• C) Income Taxes Payable 18,000 Retained Earnings 27,000
• D) Patent 45,000

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Definitions:

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity supplied at those prices.

Excise Tax

A tax charged on specific goods, such as tobacco and alcohol, typically imposed by the government to regulate or discourage their consumption.

SUV Suppliers

SUV suppliers are manufacturers or vendors that provide sport utility vehicles to the consumer market.

Growth Strategy

Focuses on growing and expanding the business. It can be pursued internally by opening additional locations or externally through mergers, joint ventures, or the acquisition of other businesses.