Case 16-8 (just solve situation F)

Integrating Case 16-8 Tax effects of accounting changes and error correction; six situations LO16-2, LO16-3, L LO16-8 Williams-Santana Inc. is a manufacturer of high-tech industrial parts that was started in 2010 by two talented engineers with little business training. In 2024, the company was acquired by one of its major customers. As part of an internal audit, the following facts were discovered. The audit occurred during 2024 before any adjusting entries or closing entries were prepared. The income tax rate is 25% for all years. f. Additional industrial robots were acquired at the beginning of 2021 and added to the company's assembly process. The $1,000,000 cost of the equipment was inadvertently recorded as repair expense. The robots have 10-year useful lives and no material salvage value. This class of equipment is depreciated by the straight-line method for both financial reporting and income tax reporting. Required: For each situation: 1. Identify whether it represents an accounting change or an error. If an accounting change, identify the type of change. 2. Prepare any journal entry necessary as a direct result of the change or error correction, as well as any adjusting entry for 2024 related to the situation described. Any tax effects should be adjusted for through the deferred tax liability account