The first audit of the books of Sarasota Company was made for the year ended December $81,2026$ In evaminig the looks the auditor found that certain items had been overlooked or incorrectly handled in the last & years. These items are:$1.$ At the beginning of $2024,$ the company purchased a machine for $$548,000($salvage value of $$54300)$ that had a useful lie of$6$ years. The bookkeeper used straight$-$line depreciation but failed to deduct the savage value in computing the depreciation base for the S years$2.$ At the end of $2025,$ the company failed to accrue sales salaries of $$43,000\mathrm{.}3.$ A tax lawsuit that involved the year $2024$ was settled late in $2026$ It was determined that the company owed an aditional $$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 $$81,000$ to a loss account in $2026$Sarasota Company purchased a copyright from another company early in $2024$ for $$90,000.$ Sarasota had not amoreteed tine copyright because its value had not diminished. The copyright has a useful life at purchase of $20$ years$\mathrm{.}5.$ In $2026,$ the company wrote off $$88,000$ of inventory considered to be obsoletes this loss was charged directly to Retained Earnings.