Error will include a credit to accumulated depreciation

Assignment Help Financial Accounting

Reference no: EM13866601

In 2013, internal auditors discovered that Fay, Inc. had debited an expense account for the $5,520,000 cost of a machine purchased on January 1, 2010. The machine's useful life was expected to be 23 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. $720,000

b. $5,520,000

c. $480,000

d. $240,000

Reference no: EM13866601

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