The following are the comparative income statements for Pannebecker Inc. for the years 2018 and 2019.

The following additional information is provided.
1. In 2019, Pannebecker Inc. decided to switch its depreciation method from sum-of-the-years'-digits to the straight-line method. The assets were purchased at the beginning of 2018 for $90,000 with an estimated useful life of 4 years and no residual value. (The 2019 income statement contains depreciation expense of $27,000 on the assets purchased at the beginning of 2018.)
2. In 2019, the company discovered that the ending inventory for 2018 was overstated by $20,000; ending inventory for 2019 is correctly stated.
Instructions
Prepare the revised retained earnings statement for 2018 and 2019, assuming comparative statements. (Ignore income taxes.)

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2019 2018 $340,000 $270,000 Sales Cost of sales 200,000 142,000 Gross profit 140,000 128,000 Expenses 88,000 50,000 $ 52,000 $ 78,000 Net income Retained earnings (Jan. 1) $125,000 $ 72,000 Net income 52,000 78,000 Dividends (30,000)(25,000) Retained earnings (Dec. 31) $147,000 $125,000