Joseph Co. began operations on January 1, 2014. Financial statements for 2014 and 2015 contained the following errors: In addition, on December 26, 2015 fully depreciated equipment was sold for $48,000, but the sale was not recorded until 2016. No corrections have been made for any of the errors.
InstructionsIgnoring income taxes, show your calculation of the total effect of the errors on 2015 net income.

Question

Joseph Co. began operations on January 1, 2014. Financial statements for 2014 and 2015 contained the following errors:  In addition, on December 26, 2015 fully depreciated equipment was sold for $48,000, but the sale was not recorded until 2016. No corrections have been made for any of the errors.
InstructionsIgnoring income taxes, show your calculation of the total effect of the errors on 2015 net income.

Quizplus · Accepted Answer

The Answer of Joseph Co. began operations on January 1, 2014. Financial statements for 2014 and 2015 contained the following errors:  In addition, on December 26, 2015 fully depreciated equipment was sold for $48,000, but the sale was not recorded until 2016. No corrections have been made for any of the errors.
InstructionsIgnoring income taxes, show your calculation of the total effect of the errors on 2015 net income.

Joseph Co Began Operations on January 1, 2014