Question 5 (5 points) [ote [ Cubic Inc. acquired some manufacturing equipment in January 2016 for $400,000 and depreciated it $40,000 each year for three years on a straight-line basis. During 2019, the manufacturer announced a new technology for this type of equipment that will make the old models obsolete by the end of 2022. As a result, Cubic will plan to replace the equipment at that time, effectively reducing the asset's life from ten to seven years. In its financial statements for 2019, Cubic should C) 1) make an adjustment to retained earnings for the error in measuring depreciation during 2015-2018. cf \\/ 2) charge $280,000 in depreciation expense. ry | | . \\ 3) None of these answer choices are correct. C) A) report the book value of the equipment in its December 31, 2019 balance sheet at $210,000