On December 31, 2020, before the books were closed, the management and accountants of Sheridan Inc. made the following determinations about three pieces of equipment. 1. Equipment A was purchased January 2, 2017, It originally cost $537,000 and, for depreciation purposes, the straight-line method was originally chosen. The asset was originally expected to be useful for-10 years and have a zero salvage value, In 2020, the decision was made to change the depreciation method from straight-line to sum-of-the-years-digits, and the estimates relating to useful life and salvage value remained unchanged. 2. Equipmeni B was purchased January 3, 2016. It originally cost $180,000 and, for depreciation purposes, the straight-line method was chosen, The asset was originally expected to be useful for 15 years and have a zero residual value. In 2020 , the decision was made to shorten the total life of this asset to 9 years and to estimate the residual value at $2,900. 3. Equipment C was purchased January 5,2016 . The asset's original cost was $160,300, and this amount was entirely expensed in 2016. This particular asset has a 10-year useful life and no residual value. The straight-line method was chosen for depreciation purposes. Additional data: 1. Income in 2020 before depreciation expense amounted to $397,400. 2. Depreciation expense on assets other than A,B, and C totaled $54,500 in 2020 . 3. Income in 2019 was reported at $366,700. Additional data: 1. Income in 2020 before depreciation expense amounted to $397,400. 2. Depreciation expense on assets other than A, B. and C totaled $54,500 in 2020 . 3. Income in 2019 was reported at $366,700. 4. Ignore all ihcome tax effects. 5. 99,200 shares of common stock were outstanding in 2019 and 2020. SHERIDAN INC. Comparative Retained Earnings Statements For the Years Ended On December 31, 2020, before the books were closed, the management and accountants of Sheridan Inc. made the following determinations about three pieces of equipment. 1. Equipment A was purchased January 2, 2017, It originally cost $537,000 and, for depreciation purposes, the straight-line method was originally chosen. The asset was originally expected to be useful for-10 years and have a zero salvage value, In 2020, the decision was made to change the depreciation method from straight-line to sum-of-the-years-digits, and the estimates relating to useful life and salvage value remained unchanged. 2. Equipmeni B was purchased January 3, 2016. It originally cost $180,000 and, for depreciation purposes, the straight-line method was chosen, The asset was originally expected to be useful for 15 years and have a zero residual value. In 2020 , the decision was made to shorten the total life of this asset to 9 years and to estimate the residual value at $2,900. 3. Equipment C was purchased January 5,2016 . The asset's original cost was $160,300, and this amount was entirely expensed in 2016. This particular asset has a 10-year useful life and no residual value. The straight-line method was chosen for depreciation purposes. Additional data: 1. Income in 2020 before depreciation expense amounted to $397,400. 2. Depreciation expense on assets other than A,B, and C totaled $54,500 in 2020 . 3. Income in 2019 was reported at $366,700. Additional data: 1. Income in 2020 before depreciation expense amounted to $397,400. 2. Depreciation expense on assets other than A, B. and C totaled $54,500 in 2020 . 3. Income in 2019 was reported at $366,700. 4. Ignore all ihcome tax effects. 5. 99,200 shares of common stock were outstanding in 2019 and 2020. SHERIDAN INC. Comparative Retained Earnings Statements For the Years Ended
