Ch 22 Presented below are the comparative income and reained carings statemens fr Denise Habe Inec for the years 2017 and 2018. 2017 2018 340,000 270,000 200,000 142.000 140,000 88.00050,000 5200078.000 Sales Cost of sales Gross profit Expenses Net income 128,000 Retained egs. (1/1) 125,000 72,000 Net income Dividends Retained egs. (12/31) 147.000 52,000 78,000 30,000) (25000) 125000 In 2018, Denise Habbe Inc. decided to switch its depreciation method from sum of the years' digits to straight- line The assets were purchased at the beginning of 2017 for $100,000 with an estimated useful life of 4 years and no salvage value. The 2018 income statement contains depreciation expense of $30,000 on the assets purchased at the beginning of 2017) 2. In 2018, the company discovered that the ending inventory for 2017 was overstated by $24,000, ending inventory for 2018 is correctly stated Prepare the revised retained earnings statement for 2017 and 2018, assuming comparative statements. Ignore income taxes