Tianan Corp. acquired equipment in 20x1 for $640,000. Management instructed the accounting staff to depreciate the equipment on a 25% declining balance rate. In 20X3, as the year-end financial statements are being prepared, the chief accountant discovers that the equipment had been depreciated over the previous two years at 30% instead of 25%. Tianan's income tax rate is 40%. Required: 1. Calculate the amounts of the adjustments that should be made to opening retained earnings in the comparative statements of changes in equity for each of 20X1 and 20x2. (Hint: For 2002 you should enter the cumulative effect) 20X1 Retained Earnings Understated Understated 20X2