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Frey, Inc. purchased a machine for $400,000 on January 2,2017 . The machine has an...

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Accounting

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Frey, Inc. purchased a machine for $400,000 on January 2,2017 . The machine has an estimated useful life of 4 years and a salvage value of $50,000. The machine is being depreciated using the sum-of-the-years'-digits method. The December 31,2018 asset balance, net of accumulated depreciation, should be: Select one: a. $155,000 b. $245,000 c. $170,000 d. $90,000 e. $105,000 The Piepon Corp. recorded the accrual of an expense by debiting Prepaid Expense and crediting Accounts Payable. What is the effect of the error on Assets and Net income, respectively? Select one: a. Understated, No error b. Overstated, Overstated c. Understated, Overstated d. Overstated, No error c. Understated, Understated

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