Provide the appropriate prior year correcting entry

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Question - As the new junior staff auditor, you have been assigned to review the December 2019 year-end capital asset section for Brentsteel Corp. During your review, you discover that a property acquisition made on July 1, 2016 in the amount of $270,000 was recorded entirely to the Land account, instead of being of allocated between Land at $70,000 and Building at $200,000 The company's practice is to depreciate buildings straight line over 40 years with a full year's depreciation being taken in the first year. Depreciation for 2019 has not yet been recorded.

Required - Provide the appropriate prior year correcting entry. The company's tax rate is 30%. Show your calculations.

Reference no: EM132699693

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