A company has a machine that cost $ 21,000 when acquired at the beginning of Year 1.

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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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Intermediate Accounting

ISBN: 978-0071339476

Volume 1, 6th Edition

Authors: Beechy Thomas, Conrod Joan, Farrell Elizabeth, McLeod Dick I

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