Problem 20-17 (Algo) Integrating problem; error; depreciation; deferred taxes (LO20-6) George Young Industries (GYI) acquired industrial robots at the beginning of 2018 and added them to the company's assembly process. During 2021, management became aware that the $2.8 million cost of the equipment was inadvertently recorded as repair expense on GYI's books and on its income tax return. The industrial robots have 10-year useful lives and no material salvage value. This class of equipment is depreciated by the straight-line method for financial reporting purposes and for tax purposes it is considered to be MACRS 7-year property. Cost deducted over 7 years by the modified accelerated recovery system as follows: Year 2018 2019 2020 2021 2022 2023 2024 2025 Totals MACRS Deductions $ 400, 120 685, 720 489, 720 349, 720 250, 040 249, 760 250, 040 124, 880 $ 2, 800,000 The tax rate is 25% for all years involved. Required: 1. & 3. Prepare any journal entry necessary as a direct result of the error described and the adjusting entry for 2021 depreciation. 2. Will GYI account for the change (a) retrospectively or (b) prospectively? Complete this question by entering your answers in the tabs below. Req 1 and 3 Reg 2 Prepare any journal entry necessary as a direct result of the error described and the adjusting entry for 2021 depreciation. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your final answers to the nearest whole dollar.) View transaction list Journal entry worksheet Req 1 and 3 Req 2 Prepare any journal entry necessary as a direct result of the error described and the adjusting entry for 2021 depreciation required for a transaction/event, select "No journal entry required" in the first account field. Round your final answers to t whole dollar.) View transaction list Journal entry worksheet Record the correcting entry. Note: Enter debits before credits. Event General Journal Debit Credit 1 Record entry Clear entry View general journal Required: 1. & 3. Prepare any journal entry necessary as a direct result of the error described and the adjusting entry for 2021 depreciation. 2. Will GYI account for the change (a) retrospectively or (b) prospectively? Complete this question by entering your answers in the tabs below. Reg 1 and 3 Reg 2 Prepare any journal entry necessary as a direct result of the error described and the adjusting entry for 2021 depreciation. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your final answers to the nearest whole dollar.) View transaction list Journal entry worksheet Record the 2021 adjusting entry for depreciation. Note: Enter debits before credits. Event General Journal Debit Credit 2 Record entry Clear entry View general journal Problem 20-17 (Algo) Integrating problem; error; depreciation; deferred taxes (LO20-6] George Young Industries (GYI) acquired industrial robots at the beginning of 2018 and added them to the company's assembly process. During 2021, management became aware that the $2.8 million cost of the equipment was inadvertently recorded as repair expense on GYI's books and on its income tax return. The industrial robots have 10-year useful lives and no material salvage value. This class of equipment is depreciated by the straight-line method for financial reporting purposes and for tax purposes it is considered to be MACRS 7-year property. Cost deducted over 7 years by the modified accelerated recovery system as follows: Year 2018 2019 2020 2021 2022 2023 2024 2025 Totals MACRS Deductions $ 400, 120 685, 720 489, 720 349, 720 250, 040 249, 760 250, 040 124, 880 2,800,000 The tax rate is 25% for all years involved. Required: 1. & 3. Prepare any journal entry necessary as a direct result of the error described and the adjusting entry for 2021 depreciation. 2. Will GYI account for the change (a) retrospectively or (b) prospectively? Complete this question by entering your answers in the tabs below. Req 1 and 3 Req 2 Will GYI account for the change (a) retrospectively or (b) prospectively? Restate the financial statements