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George Young Industries (GY) acquired industrial robots at the beginning of 2018 and ded them to the company's assembly process. During 2021. management became aware

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George Young Industries (GY) acquired industrial robots at the beginning of 2018 and ded them to the company's assembly process. During 2021. management became aware that the $1.5 million cost of the equipment was inadvertently recorded as repair expense on Gyl's books and on its Income tax return. The Industrial robots have 10-year useful lives and no material salvage value This class of equipment 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 over 7 years by the modified accelerated recovery system as follows: Year 2018 2819 2820 2821 2022 2023 2024 2023 MACRS Deductions $ 214,358 362350 (262,350 18735 133.950 13. Bee 133.950 66.00 $1 Seele Total The tax rate is 25% for all years involved Required: 1. & 3. Prepare any Journal entry necessary as a direct result of the error described and the adjusting entry for 2021 depreciation 2. Will GYI account for the change (a) retrospectively or (b) prospectively? Complete this question by entering your answers in the tabs below. Red 1 and 3 Reg 2 Prepare any ournal entry necessary as a direct result of the error described and the adjusting entry for 2021 depreciation. (it na entry Na Print Req 1 and 3 Req 2 References Prepare any journal entry necessary as a direct result of the error described an required for a transaction/event, select "No journal entry required" in the first whole dollar.) View transaction list View journal entry worksheet X 1 Record the correcting entry. 2 Record the 2021 adjusting entry for depreciation. Required: 1. & 3. Prepare any Journal entry necessary as a direct result of the error described an 2 Will GYI account for the change (a) retrospectively or (b) prospectively? es Complete this question by entering your answers in the tabs below. Req 1 and 3 Req 2 Will GYI account for the change (a) retrospectively or (b) prospectively? Restate the financial statements

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