On December $31,2025,$ before the books were closed, the management and accountants of Tannery Inc made the following determinations about three depreciable assets:

Depreciable asset $x$ was purchased January $4,2023.$ The asset's original cost was $$114,000,$ and this amount was entirely expensed in $2023.$ This particular asset has a $8-$year useful life and no salvage value. The straight$-$line method was chosen for depreciation purposes.

Depreciable asset $Y$ was purchased January $2,2024.$ It originally cost $$540,000$ and, for depreciation purposes, the sum$-$ofthe$-$years' digit method was originally chosen. The asset was originally expected to be useful for $10$ years and have a zero salvage value In $2025,$ the decision was made to change the depreciation method from sum$-$of$-$the$-$years' digits to straightline, and the estimates relating to useful life and salvage value remained unchanged.

Depreciable asset $Z$ was purchased January $3,2021.$ It originally cost $$160,000$ and, for depreciation purposes, the straightline method was chosen. The asset was originally expected to be useful for $8$ years and have a zero salvage value. In $2025,$ the decision was made to extend the total life of this asset to $10$ years and to estimate the salvage value at $$5,000.$

Additional data:

Income in $2025$ before depreciation expense amounted to $$316,000.$

Depreciation expense on assets other than X$,$ Y$,$ and Z totaled $$41,000$ in $2025.$

Income in $2024$ was reported at $$298,000.$

$4.$ Ignore all income tax effects.

$100,000$ shares of common stock were outstanding in $2024$ and $2025.$

$($a$)$

Prepare all necessary entries in $2025$ to record these determinations. $($Round answers to $0$ decimal places, eg$.5,125.$ Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. List all debit entries before credit entries.$)$

No$.$ Account Titles and Explanation

Debit

Credit

$1.$

Depreciation Expense

Accumulated Depreciation$-$Equipment

$($To correct equipment expensed.$)$

Accumulated Depreciation$-$Equipment

$($To record depreciation.$)$

$2.$ Depreciation Expense

Accumulated Depreciation$-$Equipment

$3.$ Depreciation Expense

Accumulated Depreciation$-$Equipment

$($b$)$

Prepare comparative retained earnings statements for Tannery Inc, for $2024$ and $2025.$ The company had retained earnings of $$325,000$ at December $31,2023.($Round answers to $0$ decimal places, eg$.5,125.)$