3 Company acquired machines at the beginning of 2018. During 2021, management became aware that the $1.1 million cost of the machines was inadvertently recorded as repair expense on the books and income tax return. The machines have 10-year useful lives and no material salvage value. This class of machines is depreciated by the straight-line method for financial reporting purposes and for tax purposes it is considered to be MACRS 7-year property. Cost deducted by year using MACRS should have been as follows: Year 13 points 02:42:01 2018 2019 2020 2021 2022 2023 2024 2025 Totals MACRS Deductions $ 157,190 269,390 192,390 137,390 98,230 98,120 98,230 49,060 $1,100,000 eBook eBook The tax rate is 25% for all years involved. Required: 1. & 3. Prepare the journal entry necessary to correct the error described (as if it was discovered at the beginning of 2021); and, separately the adjusting entry to record 2021 depreciation. 2. Will Company account for the change (a) retrospectively or (b) prospectively? Complete this question by entering your answers in the tabs below. Req 1 and 3 Reg 2 Prepare any journal entry necessary as a direct result of the error described and the adjusting entry for 2021 depreciation. (If no entry is reauired for a transaction/event, select "No journal entry required" in the first account field. Round vour final answers to the nearest