At the beginning of 2016, Robotics Inc. acquired a manufacturing facility for $14.0 million. $11.0...
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Accounting
At the beginning of 2016, Robotics Inc. acquired a manufacturing facility for $14.0 million. $11.0 million of the purchase price was allocated to the building. Depreciation for 2016 and 2017 was calculated using the straight-line method, a 20-year useful life, and a $3.0 million residual value. Assume that 2016 depreciation was incorrectly recorded as $40,000. This error was discovered in 2018. How should Robotics account for the error? What is depreciation on the building for 2018 assuming no change in estimate of useful life or residual value?
Required 1: Record the entry for error correction.
Required 2: What is depreciation on the building for 2018 assuming no change in estimate of useful life or residual value?
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