Exercise 11-26 (Algo) Error correction [LO11-2, 11-7] In 2021, internal auditors discovered that PKE Displays, Inc. had deblted an expense account for the $351,000 cost of equipment purchased on January 1, 2018. The equipment's life was expected to be five years with no residual value, Straight-line depreclation is used by PKE Required: 1. Determine the cumulative effect of the error on net income over the three-year period from 2018 through 2020 , and on retained earnings by the end of 2020 . 2. Prepare the correcting entry assuming the error was discovered in 2021 before the adjusting and closirig entries. (lgnore income taxes.) 3. Assume instead that the equipment was disposed of in 2022 and the oniginal error was discovered in 2023 after the 2022 financial statements were issued Prepare the correcting entry in 2023. Complete this question by entering your answers in the tabs below: Determine the cumulative effect of the error on net income over the three-year period from 2018 through 2020, and on retained earnings by the end of 2020