just part B

Wildhorse Company is in the process of preparing its financial statements for 2020. Assume that no entries for depreciation have been recorded in 2020. The following information related to depreciation of fixed assets is provided to you. 1. Wildhorse purchased equipment on January 2, 2017 for $81,700. At that time, the equipment had an estimated useful life of 10 years with a $4.700 salvag value. The equipment is depreciated on a straight-line basis. On January 2 2020, as a result of additional information, the company determined that the equipment has a remaining useful life of 4 years with a $2,900 salvage value. During 2020, Wildhorse changed from the double-declining-balance method for its building to the straight-line method. The building originally cost $330.000. It had a useful life of 10 years and a salvage value of $33,000. The following computations present depreciation on both bases for 2018 and 2019. 2. Straight-line Declining-balance 2019 $29.700 52.800 2018 $29.700 66.000 3. Wildhorse purchased a machine on July 1, 2018, at a cost of $120,000. The machine has a salvage value of $18,000 and a useful life of 8 years. Wildhorse's bookkeeper recorded straight-line depreciation in 2018 and 2019 but failed to consider the salvage value. Prepare the journal entries to record depreciation expense for 2020 and correct any errors made to date related to the information provided. (Ignore taxes.) (Credit account titles are automatically indented when amount is entered. Do notIndent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts.) Debit Credit 1. 13,925 13.925 No. Account Titles and Explanation Depreciation Expense Accumulated Depreciation Equipment . Depreciation Expense Accumulated Depreciation Buildings 3 Depreciation Expense 2. 22,275 22.275 3. 12.750 12,750 Accumulated Depreciation Machinery (To record current year depreciation.) Accumulated Depreciation Machinery 3,375 3,375 Retained Earnings (To correct prior year depreciation.) (b) Show comparative net income for 2019 and 2020. Income before depreciation expense was $290,000 in 2020, and was $310,000 in 2019. (Ignore taxes.) WILDHORSE COMPANY Comparative Income Statements For the Years 2020 and 2019 2020 Income before depreciation expense $ 2019 Depreciation expense Net income $