1. What accounting entry did GyPSy make in 2022 to correct this error? (Assume NO TAXES.)

2. Prepare the 3-year comparative Statement of Retained Earnings (this would be the comparative statements as issued shortly after the end of 2022).

3. Redo parts 1 and 2 assuming a 20% tax rate. Also assume that for tax purposes, the rules are to fully depreciate the GyPSy fully in the year of purchase. Note that dividends paid out are not tax deductible. Also assume for this part 3 (only) that the net income numbers given are now net of tax. (Assume mistake not made on tax return.)

Accounting Changes and Restatements PROBLEM F GyPSy began business in 2019. It was revealed in 2022 that GyPSy had intentionally misstated depreciation expense (on its GPS devices that tourists rent during their stay in Hawaii helping them find hot lava) in prior years by using an incorrect useful life. This error was discovered on 12/31/2022. Because of this error, depreciation expense for GyPSy was misstated as follows: 2019 2020 2021 2022 Depreciation Expense shown on F/S 18,000,000 10,000,000 19,000,000 16,000,000 Depreciation Expense using correct useful life 23,000,000 12,000,000 22,000,000 18,000,000 GyPSy previously reported the following net incomes: 2019-$80,000,000; 2020- $90,000,000; 2021-$60,000,000; 2022-$50,000,000 (assume that this is calculated using incorrect life). Accounting Changes and Restatements PROBLEM F GyPSy began business in 2019. It was revealed in 2022 that GyPSy had intentionally misstated depreciation expense (on its GPS devices that tourists rent during their stay in Hawaii helping them find hot lava) in prior years by using an incorrect useful life. This error was discovered on 12/31/2022. Because of this error, depreciation expense for GyPSy was misstated as follows: 2019 2020 2021 2022 Depreciation Expense shown on F/S 18,000,000 10,000,000 19,000,000 16,000,000 Depreciation Expense using correct useful life 23,000,000 12,000,000 22,000,000 18,000,000 GyPSy previously reported the following net incomes: 2019-$80,000,000; 2020- $90,000,000; 2021-$60,000,000; 2022-$50,000,000 (assume that this is calculated using incorrect life)