During the year$-$end $20$X$2$ audit, Green Tech Company's auditor discovered that the company had incorrectly recorded a $$500,000$

piece of manufacturing equipment purchased in $20$ X $1$ as an operating expense. The equipment has an estimated useful life of $10$ years

and no salvage value. The company did not record depreciation expense for the asset in $20$X$1$ or $20$X$2.$ Based on this information, how

should Green Tech correct its $20$X$2$ balance sheet for these errors?

$$

Increase retained earnings by $$400,000,$ increase fixed assets by $$500,000,$ and increase accumulated depreciation by

$$100,000.$

Decrease $20$X$2$ operating expenses by $$500,000$ and increase fixed assets by $$500,000.$

Decrease $20$X$1$ operating expenses by $$450,000$ and increase fixed assets by $$450,000.$

Increase retained earnings by $$450,000,$ increase fixed assets by valued at $$500,000$ and increase accumulated

depreciation by $$50,000.$