in y4, JE inc discovered that deprecation expense was incorrectly calculated in Y1 and 2 in total of 4,500,000

Example 9: In Y4, JE Inc In total, $4,500,000 if depreciation expense was not recorde At the beginning of Y4, JE Inc. decided to change inventory methods from the LIFO to FIFO. The c. discovered that depreciation expense was incorrectly calculated in Y1 and 2. d during these two years. following information details the pretax income under LIFO and FIFO for Y1 through Y3. Pretax Income Under Y1 LIF Y2 FIFO 3,000,000 3,750,000 3,400,000 5,500,000 4,100,000 6,250,000 Y3 JE Inc.'s tax rate is 40%. Instructions 1. Calculate the required adjustment for the depreciation error and indicate how this correction should be presented in the financial statements. 2. Calculate the cumulative adjustment for the change in principle and indicate how the adjustment onlv Pare the s should be reported in the financial statements. 3. Prepare the statement of retained earnings for Y4. JE Inc. is presenting financial statements for Y4