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 $1.6 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: 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 2024 depreciation. 2. Will GYI account for the change (a) retrospectively or (b) prospectively