Biotech Company reported the following in its December 31 financial statements: 2017 2016 2015 $99,800 $99, 100 $98,600 1,118,500 1,110,400 1,102,300 Income Statement Depreciation expense (all assets) Balance Sheet Equipments (net) Retained earnings statement Opening retained earnings Net income (loss) Dividends Closing retained earnings 883,500 (130,400) (64,300) $688,800 902,100 45,700 (64,300) $883,500 629,500 336,900 (64,300) $902,100 After the draft 2017 financial statements were prepared but before they were issued, Biotech Company discovered that a piece of equipment was incorrectly accounted for in 2012. In early 2012, a piece of equipment was purchased for $248,000, and it should have been depreciated using the straight line method over 13 years with a $14,000 residual value. Instead, it was written off to expense. The error was made on the books, but the piece of equipment was accounted correctly for tax purposes. The tax rate was 35%. a) For 2017, prepare the journal entry on December 31 to correct the error and to record depreciation. 1. Initial calculation. Please make sure your final answer(s) are accurate to the nearest whole number. Annual depreciation of the equipment Accumulated depreciation to January 1, 2017 Adjustment to retained earnings 2. Give the year end journal entry to correct the error. Enter an appropriate description, and enter the date in the format dd/mmm (ie. 15/Jan). Please make sure your final answer(s) are accurate to 2 decimal places. General Journal Page G9 Date Account/Explanation PR Debit Credit + b) Restate all the above information, as appropriate, to retrospectively correct the error. Please make sure your final answer(s) are accurate to the nearest whole number. 2017 2016 2015 Income Statement Depreciation expense (all assets). Balance Sheet Equipments (net). Retained earnings statement Opening retained earnings Error correction Opening retained earnings as restated Net income (loss). Dividends Closing retained earnings