Error 1: Wolochuck purchased a new piece of equipment on June 30, 2016, at a cost of $45,000. The equipment has an expected salvage value of $3,000 and a useful life of 6 years. The company bookkeeper recorded depreciation each year but failed to consider the salvage value in depreciation computations through 2019 (current year). The books are still open for 2019 but all other years are closed. Prepare the analytics for 2016-2019.

1 All relevant years 2 Error Analysis 3 What we should have done? 4 5 6 7 What was done? 8 9 10 11 Overstatement (understatement) of revenuelexpense 12 13 Error analysis: 14 Income statement: Impact on net income 15 16 17 18 19 Balance Sheet: impact on Assets, Liabilities, RE and SE at the end of the error period (last year) 20 21 22 23 Credit 24 25 Correcting entry: Debit 26 27 28 29 30 31 32 For the In-class work (P22.8 assignments), also complete the table below: 33 34 35 NI 2019 Understated Overstated RE 12/31/2020 Understated Overstated 36 37 Crror Analysis format