= The first audit of the books of Kingbird Company was made for the year ended December 31, 2021. In examining the books, the auditor found that certain items had been overlooked or incorrectly handled in the last 3 years. These items are 1. 2 3. At the beginning of 2019, the company purchased a machine for $537,000 (salvage value of $53,700) that had a useful life of 6 years. The bookkeeper used straight-line depreciation but failed to deduct the salvage value in computing the depreciation base for the 3 years At the end of 2020, the company Failed to accrue sales salaries of 543,000 A tax lawsuit that involved the year 2019 was settled tate in 2021. It was determined that the company owed an additional $86.000 inwes related to 2019 The company did not record a liability in 2019 or 2020 because the possibility of loss was considered remote and charged the $86,000 to a loss account in 2021. Kingbird Company purchased a copyright from another company early in 2019 for $54.000. Kingbird had not amortized the copyright because its value had not diminished. The copyright has a useful life at purchase of 20 years 5. In 2021, the company wrote of 592,000 of inventory considered to be obsolete this loss was charged directly to Retained Earnings 4 Prepare the journal entries necessary in 2021 to correct the books, assuming that the books have not been closed. Disregard effects of corrections on income tax (Credit account ttles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts. Round answers to decimal ploorses, 1250) No. Account Titles and Explanation Credit Debit 1 No. Account Titles and Explanation Debit Credit 1 2 3 3 4. 5 e Textbook and Media