Mobic inc. acquired some manufacturing equipment in january 2015 for $400,000 and depreciated it $40,000 each year for three years on a straight-line basis. during 2018, the manufacturer announced a new technology for this type of equipment that will make the old models obsolete by the end of 2021. as a result, mobic 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 2018, mobic should:
a) charge $280,000 in depreciation expense. b) report the book value of the equipment in its december 31,2018 balance sheet at $210,000.c) make an adjustment to retained earnings for the error in measuring depreciation during 2015-2017.d) none of these answer choices are correct

Miko willingly admits that she is not an accountant by training. she is concerned that her balance sheet might not be correct. she has provided you with the following additional information. 1. the boat actually belongs to miko, not to skysong, inc.. however, because she thinks she might take customers out on the boat occasionally, she decided to list it as an asset of the company. to be consistent, she also listed as a liability of the corporation her personal loan that she took out at the bank to buy the boat. 2. the inventory was originally purchased for $27,500, but due to a surge in demand miko now thinks she could sell it for $39,600. she thought it would be best to record it at $39,600. 3. included in the accounts receivable balance is $11,000 that miko loaned to her brother 5 years ago. miko included this in the receivables of skysong, inc. so she wouldn’t forget that her brother owes her money. (b) provide a corrected balance sheet for skysong, inc.. (hint: to get the balance sheet to balance, adjust stockholders’ equity.) (list assets in order of liquidity.)