In 2022, internal auditors discovered that Fay, Inc., had debited an expense account for the $2,640,000 cost of a machine: purchased on January 1, 2019. The machine's useful life was expected to be 16 years with no residual value. Straight-line- depreciation is used by Fay. The journal entry to correct the error will include a credit to accumulated depreciation of. A) $495,000. B) $2,145,000. $330,000. $165,000.

In 2022, internal auditors discovered that Fay, Inc., had debited an expense account for the $2,640,000 cost of a machine: purchased on January 1, 2019. The machine's useful life was expected to be 16 years with no residual value. Straight-line- depreciation is used by Fay. The journal entry to correct the error will include a credit to accumulated depreciation of. A) $495,000. B) $2,145,000. $330,000. $165,000.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 15E: The following are independent errors: a. In January 2019, repair costs of 9,000 were debited to the...

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