Answer:
Debit Depreciation expense $570,000
Credit Accumulated depreciation $570,000
<em>(To record the accumulated depreciation for 3 years)</em>
Explanation:
Using a Straight-line depreciation method, depreciation expense = (Cost - Salvage value)/Estimated useful life
Depreciation expense = $2,090,000 / 11 years = $190,000 yearly
We would assume that the internal auditors detected the error at the beginning of Year 2022, so the accumulated depreciation for 3 years (Jan 2019 - Dec 2021) would be $190,000 x 3 years = $570,000
The following correctional entries will apply:
Debit Fixed asset - Machine $2,090,000
Credit Expense account $2,090,000
<em>(To appropriately record the purchase of machine)</em>
The required adjustment fot the accumulated depreciation is recorded above under the answer section.
