Which of the following describes a change in reporting entity? A company changes the companies included in combined financial statements. A company divests itself of a European branch sales office. A company acquires 10% of the outstanding stock of a supplier. A manufacturing company expands its market from regional to nationwide. The reported net incomes for the first 2 years of Larkspur Co. were as follows: 2017,$179,000;2018,$243,000. Early in 2019 , the following errors were discovered. 1. Depreciation of equipment for 2017 was overstated by $8,400. 2. Depreciation of equipment for 2018 was understated by $14,700. 3. December 31,2017 ending inventory was overstated by $17,600. 4 . December 31,2018 inventory was overstated by $25,400. Prepare the correcting entry necessary when these errors are discovered. Assume that the books are closed. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)