Valley Corporation reports the following information Correction of overstatement of depreciation expense Dividends Declared 19. S 325,000 220,000 800,000 1,000,000 in prior years, net of tax Net Income Retained Earnings 1/1/14, as reported Valley Corporation should report retained earnings, 12/31/14, at a. $1,255,000 b. $1,580,000 e. $1,905,000 d. 675,000 e. None of the above 20. What approach does the FASB require when accounting for changes in accounting principle? a. Prospective b. Allowance c. Cumulative d. Retrospective 21. Equipment was purchased on January 1, 2016 for $730,000. At the time of its purchase, the equipment was estimated to have a useful life of 6 years and a salvage value of $88,000. The equipment was depreciated using the straight-line method of depreciation through 2018. At the beginning of 2019, the estimate of useful life was revised to a total life of 8 years and the expected salvage value was changed to $56,500. The amount to be recorded for depreciation for 2019, reflecting these changes is a. $84,188 b. $81,800 c. $45,857 d. $70,500