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question 51

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Use the following information for questions.
In January 2012, Marcus Ltd.has installation costs of £9,000 on new machinery that were charged to Repair Expense.Other costs of this machinery of £30,000 were correctly recorded and have been depreciated using the straight-line method with an estimated life of 10 years and no residual value.At December 31,2012, Marcus decides that the machinery ha a remaining useful life of 15 years, starting with January 1,2012
-If the book have not been closed for 2012 and depreciation expense has not yet been recorded for 2012, the entry that marcus makes in 2012 to correct for the error of expensing installation costs on the machinery acquired in January, 2011, will include:


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