On January 2, 2014, 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 2014 and 2015, depreciation expense was erroneously calculated using a $50,000 salvage value. The error was discovered in 2016 after the 2015 books had been closed.
Required:
Prepare the correcting entry in 2016.

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The Answer of On January 2, 2014, 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 2014 and 2015, depreciation expense was erroneously calculated using a $50,000 salvage value. The error was discovered in 2016 after the 2015 books had been closed.
Required:
Prepare the correcting entry in 2016.