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1. Workman Company purchases a machine on 2nd January, 2012 for $800,000. The machine has an evaluated useful life of 5 years and a salvage value of $100,000. Depreciation was computed by the 150 percent declining-balance method. Evaluate what is amount of accumulated depreciation at the end of 31st December, 2013?
2. Elliott Corp. failed to record accrued salaries for 2011, $2,000; 2012, $2,100; and 2013, $3,900. Evaluate what is the amount of the overstatement or understatement of Retained Earnings at 31st December, 2014?
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