While preparing the year-end adjusting entries for 2021, ACME Incorporated's controller discovered that an improvement to the building made in early January 2018 in the amount of $400,000 was expensed in error. This improvement meets the criteria for capitalization and should have been capitalized. Buildings are depreciated on a declining balance basis at 10% and ACME's effective tax rate is 35% for all years. Income tax was correctly calculated for 2018 and subsequent years as the improvement was correctly included as part of the CCA calculations and the UCC pool. The January 01, 2021 retained earnings balance was $1,500,000, net income for 2021 was $650,000 and $150,000 dividends were declared. Net income for 2021 includes the correct depreciation for 2021. Required: 1. Prepare the required journal entry to recognized the accounting issue above assuming that ACME reports under ASPE. (6 marks) 2. Prepare ACME's statement of retained earnings at December 31, 2021. (7 marks)