On December 31,2020 , before the books were dosed, the management and accountants of Larkspur Inc. made the following determinations about three pieces of equipment. 1. Equipment A was purchased January 2, 2017. It originally cost $541,000 and, for depreciation purposes, the straight-line method was originally chasen. 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-vears'-digits, and the estimates relating to useful life and salvage value remained unchanged. 2. Equipment B was purchased January 3, 2016. It originally cost $184,500 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 $3,100. 3. Equipment C was purchased January 5, 2016. The asset's original cost was $159,500, and this amount was entirely expensec 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 experse amounted to $397,900. 2. Depreciation expense on assets ather than A,B, and C tataled $54,BCO in 2020 . 3. Income in 2019 was reported at $366,400. 4. Ignore all income tax effects. 5. 100,100 shares of common stock were outstanding in 2019 and 2020. (a) Your answer is correct. Prepare all necessary entries in 2020 to record these determinations. (Credit account tities are automaticoly indented when amount is entered. Do not indent manualiy. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Attempts: 2 of 5 usec (b) - Your answer is partially correct Prepare comparative retained earnings statements for Larkspur Inc. for 2019 and 2020 . The company had retained earnings of $199,000 at December 31, 2019