During 2020, the following events occurred:

The company decided to change the inventory valuation method from WA to FIFO believing that this change will provide users with more relevant and reliable information. The change effect would be as follow on the current and previous periods:

The period	Inventory under WA	Inventory under FIFO
2017	250,000	280,000
2018	290,000	300,000
2019	400,000	450,000
2020	500,000	570,000

The company has an equipment that was acquired on the 1^st of July 2016. The cost of the equipment was $220,000. It was evaluated that the UL of the equipment would be 10 years and the salvage value would be $20,000 at the end of year 10. During this year the company noticed that the UL of the equipment will not exceed a total of 8 years and the residual value will be 0.

During this period, the accounting department reported the following errors that have been discovered:

A depreciation expense of $100,000 has been duplicated during 2018.

A cash sales invoice of $760,000 was recorded by mistake as $670,000 at the end of 2019.

Additional information:

The net income of 2020 is $1,530,000

Retained earnings on 1/1/2020 was $2,450,000

The company is subject to 30% income tax during the last 5 years

Dividends declared during 2020 was $400,000.

Required:

Show the proper accounting treatment to the above events as required by IAS 8 and journalize the required entries.

Show the effect on the statement of financial position and the income statement on 31/12/2020.

Prepare a retained earnings statement for the period ended on 31/12/2020.