Record the journal entry to correct the error discovered

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Question - Hondae Inc. purchased equipment on January 1, 2018, at a cost of $600,000. The company estimated a $15,000 salvage value and that the equipment will have a useful life of 10 years. The company elected to use the straight-line depreciation method. In entering the information for the asset into the depreciation system, the salvage value was inadvertently entered as $150,000 instead of $15,000. Ignoring income taxes, record the journal entry to correct the error discovered in 2021.

Reference no: EM133102043

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