On January 1,20A,Johns Company Purchased an Asset That Cost $10,000

Multiple Choice

On January 1,20A,Johns Company purchased an asset that cost $10,000 (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 20A and no depreciation on it was recorded.Pretax profit for 20A was $11,250.What was the correct pretax profit for 20A?

A) $12,000
B) $19,200
C) $20,000
D) $20,750