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L Company Discovered That a Three-Year Insurance Premium Payment of $240,000

Question 55

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L Company discovered that a three-year insurance premium payment of $240,000 one year ago was debited to insurance expense.
Required:
1. What action is required? Ignore taxes.
2. What action is required if the error is not discovered until four years after it occurred?

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1. Last year, insurance expense would ha...

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