Presented below are the comparative income and retained earnings statements for Shamrock Inc. for the years 2017 and 2018. 2018 2017 Sales $207,000 $175,000 Cost of Sales 78,000 66.000 Gross Profit 129,000 109,000 Expenses 58,000 58,000 Net Income $71,000 $51.000 Retained Earnings (Jan. 1) $131,000 71,000 $100,000 51,000 Net Income Dividends (25.000) (20,000) Retained Earnings (Dec. 31) $177,000 $131,000 1. In 2018, Shamrock Inc. decided to switch its depreciation method from double-declining balance to the straight-line method. The depreciable assets were purchased at the beginning of 2017 for $47.000 with an estimated useful life of 5 years and no salvage value. The 2018 income statement above contains depreciation expense of $11,280 on these assets. 2. In 2018, the company discovered that the ending inventory for 2017 was understated by $8,800; ending inventory for 2018 is correctly stated. Prepare the revised retained earnings statement for 2017 and 2018, assuming comparative statements. SHAMROCK INC. Retained Earnings Statement For the Year Ended 2018 2017