On January 1, 2022, George purchased a machine. It paid $50,000 for the price of the machine, the insurance fee, and transportation fee. It also paid $8,000 to the seller for installing the machine and charged the cost to repair expense. It recorded the $50,000 payment as machine and uses straight-line depreciation method with an estimated life of 8 years and no residual value. At December 31, 2022, the company decided to change the remaining useful life to be 12 years, starting with January 1, 2023. George reported correct tax payment in its tax returns. Tax rate is 25%. George noticed the error before it recorded the depreciation expense and closed the book in 2022.

1. Prepare journal entries for the correcting the error in 2022. [6 marks]
2. Prepare journal entries for the depreciation in 2023. [3 marks]