Mendelsohn Company purchased a machine on January 1, 2013, at a cost of $48,000. The machine is expected to have an estimated residual value of $3,000 at the end of its 5-year life. The company's new accountant has used the double diminishing-balance method to depreciate the machine at December 31, 2013. However, the company has a policy of using the straight-line method to depreciate equipment. Profit for the year ended December 31, 2013 was $55,000 as the result of depreciating the machine incorrectly.
Instructions
Using the method of depreciation which the company normally follows, prepare the correcting entry and determine the corrected profit. (Show calculations.)

Question

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The Answer of Mendelsohn Company purchased a machine on January 1, 2013, at a cost of $48,000. The machine is expected to have an estimated residual value of $3,000 at the end of its 5-year life. The company's new accountant has used the double diminishing-balance method to depreciate the machine at December 31, 2013. However, the company has a policy of using the straight-line method to depreciate equipment. Profit for the year ended December 31, 2013 was $55,000 as the result of depreciating the machine incorrectly.
Instructions
Using the method of depreciation which the company normally follows, prepare the correcting entry and determine the corrected profit. (Show calculations.)

Mendelsohn Company Purchased a Machine on January 1, 2013, at a Cost