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Assume that a material error made in Year 1 is discovered in Year 3 and that retained earnings is one of the accounts that must
Assume that a material error made in Year 1 is discovered in Year 3 and that retained earnings is one of the accounts that must be corrected as a result of the error. Briefly explain how that error will be reported in each of the companys statement of shareholders equity if the company provides: (1) financial statements that cover only Year 3 or (2) comparative financial statements that cover Years 2 and 3
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