Marigold has already made an entry that established the incorrect December $31,2025,$ inventory amount.

$3.$ At December $31.2025,$ Marigold decided to change the depreciation method on its office equipment from double$-$decliningbalance to straight$-$line. The equipment had an original cest of $$97,400$ when purchased on January $1,2023.$ It has a $10-$vear useful life and no salvage value. Depreciation eppense recorded prior to $2025$ under the double$-$declining$-$balance method was $$38,000.$ Marigold has already recorded $2025$ depreclation epense of $$11,800$ using the double$-$declining$-$balance method.

$4.$ Before $2025,$ Marigold accounted for its income from long$-$term construction contracts on the cost$-$recovery basis. Early in $2025,$ Marigold changed to the percentage$-$of$-$completion basis for accounting purposes. It continues to use the cost$-$recovery method for tax purposes. Income for $2025$ has been recorded uting the percentage$-$of$-$completion method. The following information is available.

$\backslash$table$[[,$Pretar Inceme$],[,$Percentage$-$of$-$Completion,Cont$-$Recovery$],[$Prior to $2025,$$$157\mathrm{.}700,5109,400],[2025,60\mathrm{.}600,21\mathrm{.}600]]$

Prepare the journal entries necessary at December $31,2025,$ to record the above corrections and changes. The books are still open for $2025.$ The income tax rate is $20\%.$ Marigold has not yet recorded its $2025$ income tax expense and payable amounts so current$-$year tax effects may be ignored. Prior$-$year tax effects must be considered in itiem $4.$ ICredit account titler are outomatically indented when the amount Is entered. Do not indent manually. If no entry is required, select 'Tis Entry' for the account tibles and enter Ofor the amounts. List alf debit entries before credit entries.$)$