1. On January 1, year 1, the Burnham Company purchased a machine for $2,580,000; however, the cost of the machine was recorded as a repair expense. The useful life of the machine was expected to be 12 years with no residual value. Burnham uses straight-line depreciation. 
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3. What is the amount of the credit to retained earnings in the journal entry to correct the error if the error is discovered during year 4 (after 3 years)? Ignore income tax.

Answer rating: 100% (QA)

To correct the error in the accounting records we need to make an adjusting entry to reflect the pro... View the full answer