Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. george young industries (gyi) acquired industrial

George Young Industries (GYI) acquired industrial robots at the beginning of 2015 and added them...

80.2K

Verified Solution

Question

Accounting

image
George Young Industries (GYI) acquired industrial robots at the beginning of 2015 and added them to the company's assembly process. During 2018, management became aware that the $1.4 million cost of the machinery was inadvertently recorded as repair expense on GYI's books and on its income tax return. The industrial robots have 10-year useful lives and no material salvage value This class of equipment is depreciated by the straight-ine method for financial reporting purposes and for tax purposes it is considered to be MACRS 7-year property. Cost deducted over 7 years by the modified accelerated recovery system as follows: Year Deduct ion 2015 2016 2017 2018 2019 2020 2021 2022 200,060 342,860 244,860 174,860 125,020 124,880 125,020 62.440 Totals $1,400,000 The tax rate is 40% for all years involved. Required: 1. & 3. Prepare any journal entry necessary as a direct result of the error described and the adjusting entry for 2018 depreciation. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 1 Record the correcting entry. 2 Record the 2018 adjusting entry for depreciation.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students