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Zen Fitness Inc. purchased a machine on July 1, 2022 for $100,000. The machine is expected to have an estimated residual value of $8,000 at
Zen Fitness Inc. purchased a machine on July 1, 2022 for $100,000. The machine is expected to have an estimated residual value of $8,000 at the end of its 3-year life. Although Zen has a policy of using the double diminishing balance method of depreciation for machinery, the company accountant neglected to follow policy and depreciated it in 2022 using the straight-line method of depreciation. Income before income tax for the year ended October 31, 2022 was $55,000 as the result of depreciating the machine incorrectly. Required Calculate the (a reminder to round your answer to the nearest dollar): Depreciation originally recorded: . Depreciation that should have been recorded: Corrected net income/loss
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