On January 1,2010,Pyle Company Purchased an Asset That Cost $50,000

Multiple Choice

On January 1,2010,Pyle Company purchased an asset that cost $50,000 (no estimated residual value,estimated useful life 8 years,straight-line depreciation is used) .An error was made because the total cost amount was debited to an expense account for 2010 and no depreciation on it was recorded.Pretax income for 2010 was $42,000.How much is the correct 2010 pretax income?

A) $35,750
B) $48,250
C) $85,750
D) $92,000