George Young Industries $($GYI$)$ acquired industrial robots at the beginning of $2022$ and added them to the company's assembly

process. During $2024,$ management became aware that the $$2\mathrm{.}8$ million cost of the equipment was inadvertently recorded as repair

expense on GYl$\text{'}$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:

The tax rate is $25\%$ for all years involved.

Required:

& $3.$ Prepare any journal entry necessary as a direct result of the error described and the adjusting entry for $2024$ depreciation.

Will GYI account for the change $($a$)$ retrospectively or $($b$)$ prospectively?

Complete this question by entering your answers in the tabs below.

Prepare any journal entry necessary as a direct result of the error described and the adjusting entry for $2024$ depreciation.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Round your final

answers to the nearest whole dollar.

Journal entry

worksheet

$1$

$2$

Note: Enter debits before credits.