OP Company purchased a machine on 1/1/15 costing $500. Estimated life was 5 years; estimated salvage value was $100. In 2018, IOP discovered that the bookkeeper correctly used straight-line depreciation, but erroneously used an estimated life of 8 years in computing depreciation for the first 3 years of life.

The Prior Period Adjustment to be recorded in 2018 will include what adjustment to Retained Earnings?

Answer rating: 100% (QA)

To solve this problem we need to calculate the correct depreciation expense for the first 3 years an... View the full answer