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In 2018, internal auditors discovered that PKE Displays, Inc., had debited an expense account for the $384,000 cost of a machine purchased on January 1, 2015. The machine's useful life was expected to be six years with no residual value. Straight-line depreciation is used by PKE.
Question 1: Ignoring income taxes, prepare the journal entry PKE will use to correct the error. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Financial Statement Analysis and Preparation
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Computation of Free Cash Flow
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