Waves Corp., which has a calendar fiscal year, purchased its only depreciable capital asset on 1 January 20X3. Information related to the asset: Original cost Estimated residual value Depreciation method Depreciation rate $800,000 95,000 Declining balance 25% In 20X5, Waves decreased the estimated residual value to $31,500, and increased the depreciation rate to 40%. Both changes are the result of experience with the asset and revised expectations about the pattern of usage. Additional information: 20x5 $3,341,000 1,983,000 55,800 30% 20x4 $2,760,000 1,511,000 Revenue Expenses other than depreciation and tax Gain (loss) from discontinued operations, before tax Tax rate 30% Required: 1-a. Calculate the ending 20x5 balance of accumulated depreciation. Accumulated depreciation $ 602,504 1-6. Prepare the 20x5 entry for depreciation. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Credit Date 20X5 General Journal Depreciation expense Accumulated depreciation Debit 294,067 1 294,067 2. Provide the condensed comparative statement of comprehensive income for 20X5, including disclosures related to the accounting change. WAVES CORPORATION Statement of Comprehensive Income For Year Ended 31 December 20X5 20X4 Revenue $ 3,341,000 $ 2,760,000 Expenses other than depreciation and tax (1,983,000) (1,511,000) Depreciation expense (294,067) (132,188) Net income before discontinued operations and tax $ 1,063,933 $ 1,116,812 Income tax expense (319,180) (335,044) Net income from continuing operations $ 744,753 $ 781,768 Discontinued operations gain 39,060 0 Net income and comprehensive income S 783,813 781,768 * Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted