Question
Oregon Company is in the process of preparing its financial statements for 2017. Assume that no entries for any depreciation or accounting changes have been
Oregon Company is in the process of preparing its financial statements for 2017. Assume that no entries for any depreciation or accounting changes have been recorded in 2017. The following information related to depreciation of fixed assets is provided to you: Oregon purchased amachine on July 1, 2015,at a cost of $80,000. The machine has a salvage value of $8,000 and a useful life of 8 years. Oregon's bookkeeper recorded straight-line depreciation in 2015 and 2016 but erroneously assumed a useful life of 10 years. The entries to record the 2017 depreciation on themachine andthe prior period adjustment will increase Accumulated Depreciation by:
Select one:
a. $9,000b. $11,700c. $10,800d. $12,600e. $12,300
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