The Crystell D. Velarde Corporation reported net incomes for the last three years as follows: 2020 2019 $ 1,200,000 $ 1,125,000 2018 $900,000 During the 2020 year-end audit, the following items come to your attention: 1. Crystell D. Velarde bought a truck on January 1, 2017 for $490,000 cash, with an $ 40,000 estimated residual value and a six-year life. The company debited an expense account for the entire cost of the asset. Crystell D. Velarde uses straight- line depreciation for all trucks. 2. During 2020, Crystell D. Velarde changed from straight-line depreciation for its cement plant to double declining balance. The following calculations present depreciation on both bases: Straight-line Double declining balance 2020 $ 90,000 115,500 2019 2018 $ 90.000 $ 90,000 150,000 180,000 The net income for 2020 was calculated using the Straight-line method. 3. Assume that the beginning retained earnings balance (unadjusted) for 2019 was $4,050,000. Required: 1. Prepare the compound general journal/correcting entry required to correct the books assuming that the books have not been closed for 2020. Date Account Debit Credit