Only the incorrect answers in required 2 need an answer. retained earnings: 56,250 , accumulated depreciation: 43,750 , and equipment: 100,000 are incorrect answers.

Problem 11-11 (Algo) Error correction; change in depreciation method [LO11-2, 11-6, 11-7] Collins Corporation purchased office equipment at the beginning of 2019 and capitalized a cost of $2.072.000. This cost figure included the following expenditures: Purchase price Freight charges Installation charges Annual maintenance charge Total $1,910,880 36,000 26, see 1ee,eee $2,272, eee The company estimated an eight-year useful life for the equipment. No residual value is anticipated. The double-declining-balance method was used to determine depreciation expense for 2019 and 2020. In 2021, after the 2020 financial statements were issued, the company decided to switch to the straight-line depreciation method for this equipment. At that time, the company's controller discovered that the original cost of the equipment incorrectly included one year of annual maintenance charges for the equipment. Required: 1. Ignoring income taxes, prepare the appropriate correcting entry for the equipment capitalization error discovered in 2021. 2. Ignoring income taxes, prepare any 2021 journal entry(s) related to the change in depreciation methods. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Ignoring income taxes, prepare any 2021 journal entry(s) related to the change in depreciation methods. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Transaction General Journal Debit Credit Retained earnings 56.250 Accumulated depreciation 43,750 Equipment 100,000 $ 1 1 x x 2 2 184,875 Depreciation expense Accumulated depreciation OOL 184,875