Presented below are the comparative income and retained earnings statements for Denise Habbe Inc. for the years 2014 and 2015.

                           

The following additional information is provided:
  1. In 2015, Denise Habbe 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 2014 for $100,000 with an estimated useful life of 4 years and no salvage value. (The 2015 income statement contains depreciation expense of $30,000 on the assets purchased at the beginning of 2014.)
  2. In 2015, the company discovered that the ending inventory for 2014 was overstated by $24,000; ending inventory for 2015 is correctly stated.

Instructions
Prepare the revised retained earnings statement for 2014 and 2015, assuming comparative statements. (Ignore income taxes.)