3. 4. It was discovered that a machine with an original cost of $232,000, residual value of $31,600, and useful life of 4 years was expensed in error on January 23, 2022, when it was acquired. This sitation was discovered after preparing the 2023 adjusting entries but before calculating income tax expense and closing the accounts. Culver uses straight-line depreciation and takes a full year of depreciation in the year of acquisition. The asset's cost had been appropriately added to the CCA class in 2022 before the CCA was calculated and claimed. As a result of an inventory study early in 2023 after the accounts for 2022 had been closed, management decided that the weighted average cost formula would provide a more relevant presentation in the financial statements than the FIFO cost formula. In making the change to weighted average cost, Culver determined the following: Date Dec. 31, 2022 Dec. 31, 2021 Dec. 31, 2020 Inventory-FIFO Cost $84,000 128,000 198.000 Inventory-Weighted Average Cost $71.000 99.300 155