In fiscal 2013, Minaki Inc. (Minaki) pur chased machinery for $3,500,000. The machinery was supposed to be depreciated over 10 years on a straight-line basis, but for some reason, it wasn't. Minaki's new controller discovered the error in late 2017. Retained earnings on December 31, 2016, Minaki's last year-end, was $17,800,000.

Required:
Prepare the journal entry that must be made in Minaki's books to correct the error. What would retained earnings be on December 31, 2017 after the error had been corrected? Explain why the error is corrected in this way.