You are reviewing the draft year-end results of CDI for the year ended December 31, 2016 and your analysis identifies the following items with respect to capital assets.

1. You discover that a capital asset, acquired at the beginning of 2014, at a cost of $25,000, was expensed in that year. The company would normally depreciate this asset type over 5 years on a straight-line basis with no residual value.
2. In early January, 2015, CDI acquired programmable robotic equipment for one of its production lines at a vendor price of $150,000 plus 5% GST. The companys usual depreciation policy for this category of assets is straight line over 10 years with no residual value and the accountant has applied this basis in determining both the 2015 and draft 2016 net incomes. Management evaluated, early in 2017, during the subsequent events period, that this particular equipment had a high obsolescence experience caused by technology advances and has determined that a 30% declining balance depreciation method would be more appropriate for such equipment and this basis was adopted.

The companys tax rate for all periods is 30% and the tax treatment for the asset was correctly handled.

Selected draft results for the current year, excluding any effects arising from the above, are as follows:

	2016 Draft	2015
Retained earnings, beginning	$280,000	$180,000
Net income, after tax	$180,000	$160,000
Dividends declared	$80,000	$60,000

Required:

1. Prepare, with supporting calculations, all related entries required in 2016 to finalize the year end.

2. Prepare a comparative statement of Retained Earnings, in good form, for the years ended December 31, 2016 and comparative 2015. Show any supporting computations where indicated