On Jan 01, 2017 BDS purchased a machine to manufacture consumer products for $350,000, debiting machine expense and crediting cash. BDS estimated the machine's life and residual value at 5 years and $25,000, respectively. In Jan 2020, the internal auditor for BDS discovered this error, and the fact that machine had never been depreciated. For three marks determine the journal entries necessary to correct the error(s). Assume tax of 20% is levied on gross income. SHOW PLAUSIBLE CALCULATIONS TO GET CREDIT. (Use the Deferred Tax account). Dr. Cr. Jan 2020