Multiple Choice
Use the following information for questions.
Link Co.purchased machinery that cost $810,000 on January 4, 2009.The entire cost was recorded as an expense.The machinery has a nine-year life and a $54,000 residual value.The error was discovered on December 20, 2011.Ignore income tax considerations.
-Link's income statement for the year ended December 31, 2011, should show the cumulative effect of this error in the amount of
A) $726,000.
B) $642,000.
C) $558,000.
D) $0.
Correct Answer:
Verified
Correct Answer:
Verified
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