David Inc. has just completed its financial statements for the reporting year ended December 31 of Year 5. Pretax income is $120,000. The accounts have not been closed for December 31 of Year 5. Further consideration and review of the records revealed the following item related to the Year 5 statements.

On January 1 of Year 1, a machine was acquired that cost $15,000. The estimated useful life was 10 years, and the residual value was $3,000 At the time of acquisition, the full cost of the machine was incorrectly debited to the land account. The company uses straight-line depreciation.

Prepare the correcting entry that should be made on December 31 of Year 5 for the error identified, including the current year depreciation. Ignore income tax effects.

David inc. has just completed its financial statements for the reporting year ended December 31 of Year 5 , Pretax incorne is 5120.000. The accounts have not been closed for December 31 of Yeat 5 . Further consideration and reviow of the records revealed the following item related to the Year 5 statements On January 1 of Year 1. a machine was acquired that cost 515,000 . The estimated useful life was 10 years, and the residual value was 53.000 At the time of acquisition, the full cost of the machine was incorrectly debited to the land account. The company uses straightline depreciation. Prepare the correctung entry that should be made on December 31 of Year 5 for the error identified including the current year depreciation. ignore income tax effects. Cash Inventory Investment in Debt Securities Not Equipment Land Accumulated Depreciation Income Taxes Payable Retained Earnings-Prior Period Adjustment Sales Revenue Investment Revenue Cost of Goods Sold Purchases Depreciation Expense Income Tax Expense Interest Expense N/A ear 5 To correct error and record current year depreciation