Presented below are the comparative statements for Titan Company.

The following additional information is provided:
1. In 2014, Titan decided to switch its depreciation method from the straight-line method to the double-declining-balance method. The assets were purchased at the beginning of 2013 for $200,000 with an estimated useful life of 5 years and no salvage value. (The 2014 income statement contains depreciation expense of $40,000.)
2. In 2014, the company discovered that the ending inventory for 2013 was understated by $33,000; ending inventory for 2014 is correctly stated.

Instructions
Prepare the revised income and retained earnings statement for 2013 and 2014, assuming comparativestatements.

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2014 $890,000 565,000 325,000 106,000 $219,000 2013 Sales Cost of sales $640,000 480,000 160,000 60,000 $100,000 Gross profit Net income Retained earnings (Jan. 1) Net income Dividends $680,000 100,000 40.000 $740,000 $740,000 219,000 (85,000) $874,000 Retained earnings (Dec. 31)