q.11

In 2018, internal auditors discovered that Fay, Inc., had debited an expense account for the $1,200,000 cost of a machine purchased on January 1, 2015. The machine's useful life was expected to be 6 years with no residual value. Straight-line depreciation is used by Fay. The journal entry to correct the error will include a credit to accumulated depreciation of:

Multiple Choice

• $200,000.

• $600,000.

• $400,000.

• $1,200,000.