Acc423 Intermediate Accounting: BE22-6 In 2012, Bailey Corporation discovered that equipment

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Acc423 Intermediate Accounting

BE22-6
In 2012, Bailey Corporation discovered that equipment purchased on January 1, 2010, for $50,000 was expensed at that time. The equipment should have been depreciated over 5 years, with no salvage value. The effective tax rate is 30%. Prepare Bailey’s 2012 journal entry to correct the error. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.)
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