In 2013, Internal Auditors Discovered That Fay, Inc

Multiple Choice

In 2013, internal auditors discovered that Fay, Inc., had debited an expense account for the $700,000 cost of a machine purchased on January 1, 2010. The machine's useful life was expected to be five years with no residual value. Straight-line depreciation is used by Fay. The journal entry to correct the error will include a credit to accumulated depreciation of:

A) $140,000.
B) $280,000.
C) $420,000.
D) $700,000.