Presented below are the comparative income and retained earnings statements for Skysong Inc. for the years $2025$ and $2026.$

The following additional information is provided:

In $2026,$ Skysong 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 $2025$ for $$95,000$ with an estimated useful life of $4$ years and no salvage value. $($The

$2026$ income statement contains depreciation expense of $$28,500$ on the assets purchased at the beginning of $2025.)$

In $2026,$ the company discovered that the ending inventory for $2025$ was overstated by $$22,800$; ending inventory for $2026$ is

correctly stated.

Prepare the revised retained earnings statement for $2025$ and $2026,$ assuming comparative statements. $($Ignore income taxes.$)$

Prepare the revised retained earnings statement for $2025$ and $2026,$ assuming comparative statements. $($Ignore income taxes.$)$

SKYSONG INC.

Retained Earnings Statement

For the Year Ended

$2026$