The comparative statements of Nextext Ltd., an outdoor advertising company, showed the following information: Retained earnings 1 January 20X7 Earnings Dividends 20X7 $4,528,000 607,000 (300,000) $4,835,000 20X8 $4,341,000 467,000 (280,000) $4 $4,528,000 Retained earnings 31 December 20X7 In 20x8, it came to the attention of Nextest's newly hired financial vice-president that management had re-estimated the cost of removing roof-mounted billboards and restoring the roofs at the end of 20X7 but had made no adjustment in that year. The cost estimates at the end of 20x7 had increased by close to 35%, from $425,000 to $575,000. The average remaining period of time before the roof leases expire (and the decommissioning costs are incurred) was eight years from the end of 20X7. Decommissioning costs (.e., asset retirement obligations) are discounted at a rate of 6%. (PV of $1, PVA of $1, and PVAD of $1.) (Use appropriate factor(s) from the tables provided. Round time value factor to 5 decimal places.) Required: 1. Not available in connect. 2. Assume for the purposes of this requirement that 20X7 results should be restated. Prepare the journal entry (or entries) necessary to effect the restatement. Nextext's income tax rate is 32%. (Round final answers to nearest dollar amount.) Required: 1. Not available in connect. 2. Assume for the purposes of this requirement that 20X7 results should be restated. Prepare the journal entry (or entries) necessary to effect the restatement. Nextext's income tax rate is 32%. (Round final answers to nearest dollar amount.) Answer is complete but not entirely correct. No Date Account Title Debit Credit 1 20X7 Liability for asset decommissioning costs 159,000 x Liability for asset decommissioning costs 159,000