Question: A company has a machine that cost 21 000 when
A company has a machine that cost $ 21,000 when acquired at the beginning of Year 1. It had a 10- year useful life and a $ 1,000 estimated residual value. Toward the end of Year 5, the company discovered that, in error, the machine had been expensed when it was acquired. Straight- line depreciation is appropriate. What adjustment to opening retained earnings is appropriate in Year 5?
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