On December 31, 2025, before the books were closed, the management and accountants ofTanneryInc. made the following determinations about three depreciable assets:

1.		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.
2.		Depreciable asset Y was purchased January 2, 2024. It originally cost $540,000and, for depreciation purposes, the sum-of-the-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 straight-line, and the estimates relating to useful life and salvage value remained unchanged.
3.		Depreciable asset Z was purchased January 3, 2021. It originally cost $160,000and, for depreciation purposes, the straight-line 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:

1.		Income in 2025 before depreciation expense amounted to $316,000.
2.		Depreciation expense on assets other than X, Y, and Z totaled $41,000in 2025.
3.		Income in 2024 was reported at $298,000.
4.		Ignore all income tax effects.
5.		100,000shares 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, e.g. 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.	enter an account title to correct equipment expensed	enter a debit amount	enter a credit amount
	enter an account title to correct equipment expensed	enter a debit amount	enter a credit amount
	enter an account title to correct equipment expensed	enter a debit amount	enter a credit amount
	(To correct equipment expensed.)
	enter an account title to record depreciation	enter a debit amount	enter a credit amount
	enter an account title to record depreciation	enter a debit amount	enter a credit amount
	(To record depreciation.)
2.	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
3.	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount

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

TANNERYINC. Comparative Retained Earnings Statements For the Years Ended
		2025		2024
select an opening name Error in Recording EquipmentNet Income/(Loss)Retained Earnings, December 31Retained Earnings, January 1, as adjustedRetained Earnings, January 1, as reportedCorrect answer		$enter a dollar amount		$enter a dollar amountCorrect answer
select between addition and deduction AddLessCorrect answer:select an item Error in Recording EquipmentNet Income/(Loss)Retained Earnings, December 31Retained Earnings, January 1, as adjustedRetained Earnings, January 1, as reportedCorrect answer		enter a dollar amountIncorrect answer		enter a dollar amount
select a summarizing line for the first part Error in Recording EquipmentNet Income/(Loss)Retained Earnings, December 31Retained Earnings, January 1, as adjustedRetained Earnings, January 1, as reportedCorrect answer		enter a total amount for the first partIncorrect answer		enter a total amount for the first partIncorrect answer
select between addition and deduction AddLessCorrect answer:select an item Error in Recording EquipmentNet Income/(Loss)Retained Earnings, December 31Retained Earnings, January 1, as adjustedRetained Earnings, January 1, as reportedCorrect answer		enter a dollar amount		enter a dollar amount
select a closing name Error in Recording EquipmentNet Income/(Loss)Retained Earnings, December 31Retained Earnings, January 1, as adjustedRetained Earnings, January 1, as reportedCorrect answer		$enter a total amount		$enter a total amount