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Crane Company purchased equipment that cost $3250000 on January 1, 2017. The entire cost was...

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Accounting

Crane Company purchased equipment that cost $3250000 on January 1, 2017. The entire cost was recorded as an expense. The equipment had a 9-year life and a $111000 residual value. Crane uses the straight-line method to account for depreciation expense. The error was discovered on December 10, 2019. Crane is subject to a 40% tax rate. Before the correction was made and before the books were closed on December 31, 2019, retained earnings was understated by

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