3. A tax lawsuit related to the year 2021 was settled late in 2023. It was determined that the company owed an additional $93,000 in taxes related to 2021. The company did not record a liability in 2019 or 2020 because the possibility of loss was considered remote and charged the $93,000 to retained earnings in 2023 as a correction of a prior year's error. (It is not an Income Tax Expense).

3. 93000 Retained Earnings 93000