On January 2, 2016, China Co

question 64

Essay

On January 2, 2016, China Co. bought a machine for $400,000 with a salvage value of $20,000 and a four-year useful life. Straight-line depreciation was used. However, during 2016 and 2017, depreciation expense was erroneously calculated using a $50,000 salvage value. The error was discovered in 2018 after the 2017 books had been closed.
Required:
Prepare the correcting entry in 2018.

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Definitions:

White Blood Cells

Cells of the immune system involved in protecting the body against both infectious disease and foreign invaders.

Distressful Symptoms

Unpleasant physical or psychological signs that cause discomfort or suffering to an individual.

Constipation

A condition where an individual experiences difficulty in passing stools or has infrequent bowel movements.

Diarrhea

A condition characterized by the frequent passage of loose or watery stools.