Change in Estimate and Error; Financial Statements] [LO 2, s) Prisented below are the comparative income and retained earnings statements for Denise Hahbe Inc. for the years 201? and 2010. 2018 2017 Sales $340,000 $220,000 Cost of sales m w Gross prot 140,000 128,000 Expense. 00,000 50 000 Net income $ 52,000 $ 20,000 Retained earnings (Jan. 1} $125,000 $ 22,000 Net income 52,000 $0,000 Dividends [30 000) [25 000) Retained earnings (Dec. 31] $142,000 $125,000 The following additional information is provided: ' 1.10 2018, Denise Hahbe Inc. decided to switch its depreciation method from sumofthe-years' digits to the straightline method. The assets were purchased at the beginning of 201'? for $100,000 with an es'dmated useful life of 4 1years and no salvage value. (The 2013 income statement contains depreciation expense of $30,000 on the assets purchased at the beginning of 2017.) s 2.10 2018, the company.1 discovered that the ending inventon for 201? was overstated by $24,000; ending inventor}.r for 2010 is correctly stated