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On January 2, 2008, a Repair Cost of $4,000 Was

Question 127

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On January 2, 2008, a repair cost of $4,000 was incorrectly debited to the related machinery account. The machine was acquired January 1, 2005. Machinery is being depreciated on a straight-line basis at 10 percent per year with a 10 percent residual value. Give the correcting entry on January 2, 2011 (the date the error was discovered), ignoring the income tax effect.

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