At January 1, 2020, Baker Corp. reported retained earnings of $2 million. In 2020, Baker discovered that 2019 depreciation expense was understated in error by $500,000. In 2020, net income was $800,000 and dividends declared were $195,000. The tax rate is 25%. Baker follows ASPE, and the deferred taxes method of accounting for income taxes. 

(a) Prepare a 2020 statement of retained earnings for Baker Corp. 

(b) Briefly explain how your answer would change if Baker were to follow IFRS.