On December $31,2025,$ before the books were closed, the management and accountants of Pronghorn Inc. made the following Ignore all income tax effects.

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

$($a$)$

Your answer is partially correct.

Prepare all necessary entries in $2025$ to record these determinations. $($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 O for the amounts. List

all debit entries before credit entries.$)$

No$.$ Account Titles and Explanation

Debit

Credit

Depreciation Expense

Accumulated Depreciation$-$Equipment

Accumulated Depreciation$-$Equipment Accumulated Depreciation$-$Equipment

Retained Earnings

$($To correct equipment expensed.$)$

$16120$

Accumulated Depreciation$-$Equipment

$($To record depreciation.$)$ Prepare comparative retained earnings statements for Pronghorn Inc. for $2024$ and $2025.$ The company had retained earnings of

$$200,000$ at December $31,2023.$

determinations about three pieces of equipment.

Equipment A was purchased January $2,2022.$ It originally cost $$543,000$ and, for depreciation purposes, the straight$-$line

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 straight$-$line to sum$-$of$-$the$-$years'$-$digits, and the

estimates relating to useful life and salvage value remained unchanged.

Equipment B was purchased January $3,2021.$ It originally cost $$181,500$ and, for depreciation puQ

method was chosen. The asset was originally expected to be useful for $15$ years and have a zero residual value. In $2025,$ the

decision was made to shorten the total life of this asset to $9$ years and to estimate the residual value at $$2,700.$

Equipment C was purchased January $5,2021.$ The asset's original cost was $$161,200,$ and this amount was entirely expensed

in $2021.$ This particular asset has a $10-$year useful life and no residual value. The straight$-$line method was chosen for

depreciation purposes.

Additional data:

Income in $2025$ before depreciation expense amounted to $$400,200.$

Depreciation expense on assets other than $A,B,$ and $C$ totaled $$55,000$ in $2025.$

Income in $2024$ was reported at $$370,300.$

Ignore all income tax effects.