Presented below are the comparative income and retained earnings statements for Marin Inc. for the years 2020 and 2021. 2021 2020 Sales $334,000 $264,000 Cost of sales 217,000 144,000 Gross profit 117,000 120,000 Expenses 95,200 50,700 Net income $21,800 $69,300 Retained earnings (Jan. 1) $121,700 $76,300 Net income 21,800 69,300 Dividends (31,400) (23,900) Retained earnings (Dec. 31) $112.100 $121,700 The following additional information is provided: 1. 2. In 2021, Marin Inc. decided to switch its depreciation method from sum-of-the-years' digits to the straight-line method. The assets were purchased at the beginning of 2020 for $106,500 with an estimated useful life of 4 years and no salvage value. (The 2021 income statement contains depreciation expense of $31.950 on the assets purchased at the beginning of 2020.) In 2021, the company discovered that the ending inventory for 2020 was overstated by $24,200; ending inventory for 2021 is correctly stated. Prepare the revised retained earnings statement for 2020 and 2021, assuming comparative statements. (Ignore income taxes.) MARIN INC. Retained Earnings Statement For the Year Ended Retained Earnings, January 1, unadjusted Less : Correction of Error for Inventory Overstatement Retained Earnings, January 1, adjusted Add: Net Income Less Dividends Retained Earnings, December 311 $ 2021 121700 24200 i 97500 2020 76300 32450 45100 31400 i 23900 98550 $ 97500