In 2013, internal auditors discovered that Fay, Inc., had debited an expense account for the $700,000 cost of a machine purchased on January 1, 2010. The machine's useful life was expected to be five 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:
A)$140,000.
B)$280,000.
C)$420,000.
D)$700,000.

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The Answer of In 2013, internal auditors discovered that Fay, Inc., had debited an expense account for the $700,000 cost of a machine purchased on January 1, 2010. The machine's useful life was expected to be five 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:
A)$140,000.
B)$280,000.
C)$420,000.
D)$700,000.

In 2013, Internal Auditors Discovered That Fay, Inc