In 20X6, Dalia Corp., a calendar fiscal-year company, discovered that depreciation expense was erroneously overstated $52,000 in both 20X4 and 20x5 for financial reporting purposes. Net income in 20x6 is correct. The tax rate is 35%. The error was made only for financial reporting, affecting depreciation and deferred income tax accounts. CCA had been recorded correctly, and thus there will be no change in taxes payable. Additional information: Beginning retained earnings Earnings (includes error in 20x5) Dividends declared 20x6 $437,000 82,000 60,000 20X5 $415,000 92,000 70,000 Required: 1. Record the entry in 20x6 to correct the error. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) X Answer is complete but not entirely correct. No Date General Journal Debit Credit 1 20X6 Accumulated depreciation 104,000 Income tax liability 33,800 Retained earnings, error correction 137,800 2. Prepare the comparative retained earnings section of the statement of changes in shareholders' equity for 20X5, reflecting the change. Answer is complete but not entirely correct. DALIA CORPORATION Retained Earnings Statement For the Year Ended 31 December 20X6 20X5 $ 437,000 $ 415,000 104,000 X 33,800 Beginning retained earnings, as previously reported Error correction, depreciation, net and tax. Beginning balance restated Earnings (restated for 20x5) $ 541,000 $ 448,800 82,000 144,000 60,000 70,000 Dividends declared $ 563,000 $ 522,800 Ending balance