In 2013, Internal Auditors Discovered That Fay, Inc

question 59

Multiple Choice

In 2013, internal auditors discovered that Fay, Inc., had debited an expense account for the $700,000 cost of a machine purchased on January 1, 2010. The machine's useful life was expected to be five 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)$140,000.
• B)$280,000.
• C)$420,000.
• D)$700,000.

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Definitions:

Deuteranopia

A type of red-green color blindness caused by the absence of or defect in the green cone cells in the eye.

Blue Cones

Photoreceptor cells in the retina of the eye responsible for the perception of blue light wavelengths.

Tritanopia

A type of color vision deficiency characterized by an inability to distinguish between blue and yellow colors.

Protanopia

A type of color blindness characterized by the inability to perceive red light, leading to difficulty distinguishing between some colors.