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In 20X6, Dalia Corp., a calendar fscal-year company, discovered that depeeciation expense was emoneously overstated $76.000 in both 20x4 and 20x5 for financial reporting purposes

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In 20X6, Dalia Corp., a calendar fscal-year company, discovered that depeeciation expense was emoneously overstated $76.000 in both 20x4 and 20x5 for financial reporting purposes Net income in 200x8 is correct. The tax rate is 40%. The error was madeotyfor tnancal reporting, afecting deprecate n and deferred rcome tax accurts. CCA hadbeen recorded corect, and mus nere ad be noctange n taxes payable. Additional information: amings$463.000 $438800 Eamings (indludes error in 20x5) 87 200 98.000 63,400 73,800 Dividends declared Required: 1. Record the entry in 20x8 to corect the error. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction ist Journal entry worksheet Record the entry for 20x6 to correct the error. Note: Enter debits beflare credits Debit Credt 20x8 Clear entry View general journal 2. Prepare the comparative retained earnings section of the statement of changes in shareholders' equity for 20X5, reflecting the change. DALIA CORPORATION Retained Earnings Statement For the Year Ended 31 December 20x6 20x5 Beginning retained earnings, as previously reported Error correction, depreciation, net and tax. Beginning balance restated Earnings (restated for 20X5) Dividends declared Ending balance

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