In 2025, Ivanhoe Company discovered an error while preparing its 2025 financial statements. A building...
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In 2025, Ivanhoe Company discovered an error while preparing its 2025 financial statements. A building constructed at the beginning of 2024 costing $1239900 has not been depreciated. The estimated useful life of the building is 30 years with no salvage value. Straight-line depreciation is used. Ivanhoe properly included depreciation on its tax return also using straight-line depreciation. Income tax payable was also reported correctly at a tax rate of 20%. Income before depreciation expense in 2025 was $340000. If single-period statements are prepared, how would the prior period adjustment be reported? A restatement of $33064 to the 2024 income Statement As $41330 of other income in 2025 A $33064 adjustment to the beginning balance on the Retained Earnings Staternent A restatement of $41330 to the 2025 Balance Sheet
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