Correction of Depreciation Error

Hondae Inc. purchased equipment on January 1 of Year 1 at a cost of $456,000. The company estimated a $3,600 salvage value and that the equipment will have a useful life of 15 years. The company elects to use the straight-line depreciation method. In entering the information for the asset into the depreciation system, the service life was inadvertently entered as 5 years instead of 15 years.

Required Ignoring income taxes, record the journal entry to correct the error discovered in Year 3. Note: Round your answers to the nearest whole dollar.

Date	Account	Dr.	Cr.
Jan. 1, Year 3	??	??
	??		??
	To correct error.

account options given to credit and debit:

Cash, Accumulated Depreciation, Building, Cost of Goods Sold, Depreciation Expense, Exploration Expense, Other Equipment, Retained EarningsPrior Period Adjustment, Sales, Gain on Reversal of Impairment Loss, Loss on Impairment, Loss on Disposal, N/A