In 2024, Internal auditors discovered that PKE Displays, Incorporated, had debited an expense account for the $350,000 cost of equipment purchased on January 1, 2021. The equipment's life was expected to be five years with no residual value. Straight-line depreciation is used by PKE. Required: 1. Determine the cumulative effect of the error on net income over the three-year period from 2021 through 2023, and on retained earnings by the end of 2023, 2. Prepare the correcting entry, assuming the error was discovered in 2024 before the adjusting and closing entries (Ignore Income taxes.) 3. Assume instead that the equipment was disposed of in 2025 and the original error was discovered in 2026 after the 2025 financial statements were issued. Prepare the correcting entry in 2026. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Assume instead that the equipment was disposed of in 2025 and the original error was discovered in 2026 after the 2025 financial statements were issued. Prepare the correcting entry in 2026. Note: If no entry is required for a transaction/event, select "No journal entry required in the first account field. View transaction list Journal entry worksheet < Record the correcting entry for errors discovered. Note: Enter debits before credits. Event 1 General Journal Debit Credit Record entry Clear entry View general journal