The first audit of the books of Marigold Company was made for the year ended December $31,2026.$ In examining the books, the auditor found that certain items had been overlooked or incorrectly handled in the last $3$ years. These items are:

At the beginning of $2024,$ the company purchased a machine for $$462,000($salvage value of $$46,200)$ 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 $2025,$ the company failed to accrue sales salaries of $$49,000.$

A tax lawsuit that involved the year $2024$ was settled late in $2026.$ It was determined that the company owed an additional $$85,000$ in taxes related to $2024.$ The company did not record a liability in $2024$ or $2025$ because the possibility of loss was considered remote, and charged the $$85,000$ to a loss account in $2026.$

Marigold Company purchased a copyright from another company early in $2024$ for $$50,000.$ Marigold had not amortized the copyright because its value had not diminished. The copyright has a useful life at purchase of $20$ years.

In $2026,$ the company wrote off $$90,000$ of inventory considered to be obsolete; this loss was charged directly to Retained Earnings.

Prepare the journal entries necessary in $2026$ to correct the books, assuming that the books have not been closed. Disregard effects of corrections on income tax. $($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. Round answers to O decimal places, e$.$g$,1250.$ List all debit entries before credit entries.$)$

No$.$ Account Titles and Explanation

Debit

Credit