On January 2, 2016, China Co. bought a machine for $400,000 with a salvage value of $20,000 and a four-year useful life. Straight-line depreciation was used. However, during 2016 and 2017, depreciation expense was erroneously calculated using a $50,000 salvage value. The error was discovered in 2018 after the 2017 books had been closed.
Required:
Prepare the correcting entry in 2018.

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The Answer of On January 2, 2016, China Co. bought a machine for $400,000 with a salvage value of $20,000 and a four-year useful life. Straight-line depreciation was used. However, during 2016 and 2017, depreciation expense was erroneously calculated using a $50,000 salvage value. The error was discovered in 2018 after the 2017 books had been closed.
Required:
Prepare the correcting entry in 2018.