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At the beginning of 2020, Armstead Corporation discovered that depreciation expense in the years prior to 2020 was incorrectly calculated and recorded. For the years before 2020, total depreciation expense of $169,000 was recorded, whereas correct total depreciation expense was $76,700. The tax rate is 30%. Armstead follows IFRS and the deferred taxes method of accounting for income taxes.
Question 1: Prepare Armstead's 2020 journal entry with respect to the depreciation expense that was recorded in the years before 2020.
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