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zen fitness inc Zen Fitness Inc. purchased a machine on March 1, 2022 for $120,000. The machine is expected to have an estimated residual value
zen fitness inc
Zen Fitness Inc. purchased a machine on March 1, 2022 for $120,000. The machine is expected to have an estimated residual value of $5,000 at the end of its 5-year life. Although Zen has a policy of using 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 November 30, 2022 was $73,000 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/lossStep by Step Solution
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