MTC Company's net incomes for the past three years are presented below (ignore taxes): 2022 2021 2020 $480,000 $450,000 $360,000 During the 2022 year-end audit, MTC bought equipment on January 1, 2019 for $490,000 with a $40,000 estimated salvage value and a six-year life. The company debited an expense account and credited cash on the purchase date for the entire cost of the asset. (Straight-line method)

Prepare in general journal form the entry necessary to correct the books, assuming that the books have not been closed for the current year.

Compute the net income to be reported each year 2020 through 2022. Ignore taxes.

Assume that the beginning retained earnings balance (unadjusted) for 2020 was $1,260,000. At what adjusted amount should this beginning retained earnings balance for 2020 be stated, assuming that comparative financial statements were prepared?

Assume that the beginning retained earnings balance (unadjusted) for 2022 is $1,800,000 and that non-comparative financial statements are prepared. At what adjusted amount should this beginning retained earnings balance be stated?