George Young Industries (GYI) acquired industrial robots at the beginning of 2013 and added them to the companys assembly process. During 2016, management became aware that the $2.1 million cost of the machinery was inadvertently recorded as repair expense on GYIs 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		MACRS Deductions
2013	$	300,090
2014		514,290
2015		367,290
2016		262,290
2017		187,530
2018		187,320
2019		187,530
2020		93,660
Totals	$	2,100,000

The tax rate is 40% 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 2016 depreciation.