Rand Company's net incomes for the past three years are presented below: During the 2014 year-end audit, the following items come to your attention: Rand bought equipment on January 1, 2011 for 5294,000 with a 524,000 estimated salvage value and a six-year life. The company debited an expense account and credited cash on the purchase date for the entire cost of the asset. (Straight-line method) During 2014, Rand changed from the straight-line method of depreciating its cement plant to the double-declining balance method. The following computations present depreciation on both bases: The net income for 2014 was computed using the double-declining balance method, on the January 1, 2014 book value, over the useful life remaining at that time. The depreciation recorded in 2014 was 572,000. Rand, in reviewing its provision for mC0ll CilW&S during 2014, has determined that 1% is the appropriate amount of bad debt expense to be charged to operations. The company had used 1/2 of 1% as its rate in 2015 and 2014 when the expense had been 518,000 and 512,000, respectively. The company recorded bad debt expense under the new rate for 2014. The company would have recorded 56,000 less of bad debt expense on December 31, 2014 under the old rate. Instructions Prepare in general journal form the entry necessary to correct the books for the transaction in part 1 of this problem, assuming that the books have not been closed for the current year. Compute the net income to be reported each year 2012 through 2014. Assume that the beginning retained earnings balance (unadjusted) for 2012 was 51,260,000. At what adjusted amount should this beginning retained earnings balance for 2012 be stated, assuming that comparative financial statements were prepared? Assume that the beginning retained earnings balance (unadjusted) for 2014 is 51,800,000 and that non-comparative financial statements are prepared. At what adjusted amount should this beginning retained earnings balance be stated