Quigley Co. bought a machine on January 1, 2013 for $1,400,000. It had a $120,000 estimated residual value and a ten-year life. An expense account was debited on the purchase date. Quigley uses straight-line depreciation. This was discovered in 2015. Instructions Prepare the entry or entries related to the machine for 2015. Solution 22-83

Equipment........................................................................................1,400,000 Retained Earnings.......................................................................1,144,000 **Accumulated DepreciationEquipment (2 $96,000).................256,000**

Depreciation Expense..............................................................................128,000 Accumulated DepreciationEquipment........................................128,000

***How did you get the 96,000 and the 256,000? and the retained earnings??? Please explain.