1. Consider the following information: A new manufacturing machine (property, plant and equipment), with a cost of N$230 000 (including VAT) were purchased and paid for by EFT on the 1st September 2020. An amount of N$50 000 (including VAT) were incurred as inauguration cost to unveil this plant on the same date. The entities depreciation policy is to depreciate machinery on the straight-line basis at a rate of 6.25% per annum. It is anticipated that this machine will have a residual value of N$40 000 (excluding VAT) at the end of its useful life. The entity has a February year end. The junior accountant processed the following journal entries for this transaction for the Reporting period ended 28 February 2021. DR CR Machinery (SFP) 230 000 Bank (SFP) 280 000 50 000 Inauguration costs (P/L) Depreciation (P/L) 10 000 Accumulated 10 000 Depreciation (SFP) (Purchase a machine including depreciation for the year) Process the correcting journal (if any) for the above transaction. 1 A. DR Machine - N$ 200 000; DR INPUT VAT - N$30 000; DR Depreciation - N$5 000; DR Inauguration costs - N$50 000; CR Bank - N$ 280 000; CR Accumulated Depreciation - N$5 000 B. DR INPUT VAT - N$30 000; DR Accumulated Depreciation - N$5 000; CR Machinery - N$30 000; Depreciation - N$5 000. C. DR Machine - N$200 000; DR INPUT VAT - N$30 000; DR Depreciation - N$10 000; DR Inauguration costs - N$50 000; CR Bank - N$ 280 000; CR Accumulated Depreciation - N$10 000. D. None of the above