The first audit of the books of Monty 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 $$528,000($salvage value of $$52,800)$ 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 additionaf $$81,000$ in taxes related to $2024.$ The company did not record a liability in $2024$ or $2025$ because the possibility of loss was considered remote, and charged the $$81,000$ to a loss account in $2026.$

Monty Company purchased a copyright from another company early in $2024$ for $$52,000.$ Monty had not anortized 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 $$94,000$ of inventory considered to be obsolete; this loss wes charged directytoretained Earnings.

Prepare the journal entries necessary in $2026$ to correct the books, assuming that the books have not been for foed Disregard effect of before credit entries.$)$

No$.$ Account Titles and Explanation

Debit

Gredita

$1.$

$(2)$