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  1. business
  2. accounting
  3. during the first month of its current fiscal year,

During the first month of its current fiscal year, Green Co. incurred repair costs of...

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Accounting

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During the first month of its current fiscal year, Green Co. incurred repair costs of $19,000 on a machine that had 4 years of remaining depreciable life. The repair cost was inappropriately capitalized. Green Co. reported operating income of $152,000 for the current year Required: a. Assuming that Green Co took a full year's straight-line depreciation expense in the current year, calculate the operating income that should have been reported for the current year. Answer is complete but not entirely correct. Operating Income $ 156,750 b. Assume that Green Co's total assets at the end of the prior year and at the end of the current year were 5930,000 and $1025.000 respectively. Calculate ROI based on operating income for the current year using the originaly reported data and then using data (Round your answers to 1 decimal place (n.9. 32.10 Answer is complete but not entirely correct. ROI Original data 15.50 Conced 162 D Indicate the effect on ROI of subsequent years of the error is not corrected ROI will be too low ROI will be too high ROI will remains the same Type here to search 9 3 4 5 0 W E R Y 11 1

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