Exercise 22-9 Presented below are the comparative income and retained earnings statements for Marin Inc. for the years 2017 and 2018 2018 2017 $316,000 185,000 131,000 94,600 $36,400 $128,600 36,400 Sales Cost of sales Gross profit Expenses Net income Retained earnings (Jan. 1) Net income Dividends Retained earnings (Dec. 31) $272,000 143,000 129,000 48,700 $80,300 $75,700 80,300 (27,400) $128,600 (31,800) $133,200 The following additional information is provided: 1. In 2018, Marin 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 2017 for $91,500 with an estimated useful life of 4 years and no salvage value. (The 2018 income statement contains depreciation expense of $27,450 on the assets purchased at the beginning of 2017.) In 2018, the company discovered that the ending inventory for 2017 was overstated by 22,000; ending inventory for 2018 is correctly stated Prepare the revised retained earnings statement for 2017 and 2018, assuming comparative statements. (Ignore income taxes.) MARIN INC. Retained Earnings Statement For the Year Ended 2018 2017