On January 1, 2017, a device was purchased for $ 3305.2 and was expensed in...
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Accounting
On January 1, 2017, a device was purchased for $ 3305.2 and was expensed in error. Typically, the company uses a residual value of zero and an estimated useful life of 10 years for assets of this type. The company uses the straight-line method to depreciate all of its assets. The bug was discovered and fixed in early 2020 (before adjustments). Ignoring any tax effect, the entry to correct the error will include a
Select one:
a. CR to Retained Earnings for $$ 4297.
b. CR to Accumulated Depreciation for $ 992.
c. DR depreciation expense of $ 992.
d. DR to Retained Earnings for $ 2314.
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