Prior to the completion of the 2020 financial statements, Frosted Flakes, Inc. CEO Tony Tiger was chatting with his chief accountant, Cindy Lou Who, about several transactions that had occurred or were discovered in the current year. The transactions being discussed were:

1. Overstatement of depreciation expense in 2019, by $82,000. The error was discovered during the internal audit for 2020.
2. A strike by a competitor resulted in a loss of revenue to Frosted Flakes of $125,000.
3. Flood damage to one of the Frosted Flakes facilities resulted in a $16,000 loss prior to insurance coverage of $5,000. The insurance payment was received in 2020.
4. During 2020, Frosted Flakes switched from units of production depreciation to straight line depreciation on its delivery trucks. Pertinent data (annualized) related to this switch are:

	Units of Production Depreciation	Straight line depreciation
2020	$220,000	$190,000
2019	250,000	190,000
2018	170,000	190,000

At year end, it was determined that the life of a group of manufacturing machines was incorrectly estimated at the time of acquiring those machines. Ms. Who determined that a change in depreciation amount based on the new expected life of the assets was warranted and the change should be made before the 2020 books are closed and the financial statements are published. Here are the details:

Original Cost	5,000,000
Original Life	15 years
Original Residual	200,000
Depreciation Method	Straight line
Years Owned to Date	6
Revised total life	11
Revised residual	50,000

Frosted Flakes fiscal year end is 12-31 and the company presents two years of income statement data upon publication of their financial statements. Their tax rate is 40%. Retained earnings at the beginning of 2020 was $10,575,000, and $300,000 dividends were declared and paid on common stock during 2020. Income before taxes for 2020 was $1,048,000 excluding any of the items listed above that may impact 2020 net income.

1. What amount, if any, is recorded pre-tax for correction(s) of an error in 2020?
2. What amount, if any, is the pre-tax cumulative effect of an accounting change in 2020?
3. What amount, if any, is the pre-tax change in accounting estimate in 2020? (enter 0 for no change)
4. What would be correct net income for 2020?
5. What would be ending retained earnings for 2020? (NOTE: for this question assume 2020 Net Income is $2,000,000)