+ TECHNICAL PROBLEM #2 Technical Problem #2 relates to chapter 4 - Income Statement and Related Information. It requires you to complete a problem on the reporting of income and changes in retained earnings, including the effects of irregular items, accounting changes and other comprehensive income. This assignment is worth 15 points. - Problem Burleson Co. is a clothing retailer with stores in several locations in the eastern U.S. A partial trial balance showing Burleson's equity, revenue and expense balances as of its December 31, 2022 year-end follows: Dividends Debits $ 106,920 Credits Retained earnings (1/1/22) Net unrealized gain on CDP bonds (1/1/22) $ 794,830 67,590 Interest revenue 27,160 Sales revenue 5,381,280 Advertising expense Cost of goods sold 158,470 2,913,150 Depreciation expense 146,390 Insurance expense 177,520 Interest expense 80,760 Salaries and wages expense Utilities expense 1,319,610 134,270 In addition, the following information is available for the company for 2022. Unless indicated otherwise, this information has not yet been reflected in the company's accounts. All of the dollar amounts are stated on a before-tax basis. 1. 2. In May 2022, Burleson sold a warehouse it no longer needed. Burleson sold the building for $309,850. Burleson's book value for the building at the time of sale was $217,460. At year-end 2022, Burleson decided to change its inventory cost flow method from Last- in, First-out (LIFO) to Average Cost (AC). The effect of the change on 2022 and prior years is as follows: Cost of goods sold LIFO Cost of goods sold AC 2022 $2,913,150 2,856,910 Prior Years $7,361,000 7,213,000