In Completing the Adjusting Entries for 2017 in Early 2018

Multiple Choice

In completing the adjusting entries for 2017 in early 2018, the internal auditor discovered that a patent, with an estimated eight-year life that was registered in January, 2017 had not been amortized. The patent cost $440,000. The income tax rate is 40%. The books are still open in 2017. What is the journal entry to correct the error?

A) $$\begin{array} { | c | r | r | } \hline \text { Amortization Expense-Patent } & 55,000 & \\\hline \text { Retained Earnings } & & 55,000 \\\hline\end{array}$$
B) $$\begin{array} { | l | r | r | } \hline \text { Patent } & 55,000 & \\\hline \text { Income Taxes Receivable } & 22,000 & \\\hline \text { Retained Earnings } & & 77,000 \\\hline\end{array}$$
C) $$\begin{array} { | l | r | r | } \hline \text { Amortization Expense - Patent } & 55,000 & \\\hline \text { Income Taxes Payable } & & 22,000 \\\hline \text { Retained Earnings } & & 33,000 \\\hline\end{array}$$
D) $$\begin{array} { | c | r | r | } \hline \text { Amortization Expense-Patent } & 55,000 & \\\hline \text { Patent } & & 55,000 \\\hline\end{array}$$