The first audit of the books of Sandhill Limited was recently carried out for the year ended December 31, 2023. Sandhill follows IFRS. In examining the books, the auditor found that certain items had been overlooked or might have been incorrectly handled in the past: At the beginning of 2021, the company purchased a machine for $462,000 (residual value of $31,200 ) that had a useful life of 6 years. The bookkeeper used straight-line depreciation, but failed to deduct the residual value in calculating the depreciation base for the three years. At the end of 2022 , the company accrued sales salaries of $52,000 in excess of the correct amount. A tax lawsuit related to the year 2021 was settled