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Holtzman Company is in the process of preparing its financial statements for 2012. Assume that no entries for depreciation have been recorded in 2012. The following information related to depreciation of fixed assets is provided to you.
2011
2010
3.Holtzman purchased a machine on July 1, 2010, at a cost of $180,000. The machine has a salvage value of $10,000 and a useful life of 8 years. Holtzman's bookkeeper recorded straight-line depreciation in 2010 and 2011 but failed to consider the salvage value.
(a) Prepare the journal entries to record depreciation expense for 2012 and correct any errors made to date related to the information provided. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
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