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San Diego State University Operations And Supply Chain Management Assignment Help - Loss

Question - Error Correction Entries the first audit of the books of Fennimore Company was made for the year ended December 31, 2010. In examining the books, the auditor found that certain items had been overlooked or incorrectly handled in the last 3 years. These items are: 1. At the beginning of 2008, the company purchased a machine for $510,000 (salvage value of $51,000) that had a useful life of 5 years. The bookkeeper used straight-line depreciation, but failed to deduct the salvage value in computing the depreciation base for the 3 years. 2. At the end of 2009, the company failed to accrue sales salaries of $45,000. 3. A tax lawsuit that involved the year 2008 was settled late in 2010. It was determined that the company owed an additional ...Read More

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