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Chia Pet, Inc. owns a machine that it uses in its manufacturing process. Chia purchased the machine 4 years ago for $100,000. The depreciation on
Chia Pet, Inc. owns a machine that it uses in its manufacturing process. Chia purchased the machine 4 years ago for $100,000. The depreciation on the machine for the first 4 years was calculated using the straight line method with no residual and a 5 year useful life. In examining the machine, Chia determines that instead of lasting one more year, the machine has two more years of useful life. With the only change being the useful life, the journal entry to record depreciation for the fifth year (year the useful life change is identified) will include which of the following? Debit to Depreciation expense for $20,000 Debit to Depreciation expense for $10,000 Credit to Machine $10,000 Credit to Accumulated depreciation for $20,000
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