George Young Industries (GYI) acquired industrial robots at the beginning of 2013 and added them to the company's assembly process. During 2016, management became aware that the $2.2 million cost of the machinery was inadvertently recorded as repair expense on GYI'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) MACR Year 2013 2014 2015 2016 2017 2018 2019 2020 Deductions 314,380 538,780 384,780 274,780 196,460 196,240 196,460 98,120 Totals $ 2,200,000 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. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet