ABC Company purchased equipment that cost $2,000,000 on January 1, 2019. The entire cost was...
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Accounting
ABC Company purchased equipment that cost $2,000,000 on January 1, 2019. The entire cost was recorded as an expense. The equipment had a ten-year life and a $100,000 residual value. ABC uses the straight-line method to account for depreciation expense. The error was discovered on December 10, 2022. ABC is subject to a 30% tax rate.
What is the adjustment to retained earnings at January 1, 2022?
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