At January 1, 2020, Pronghorn Company reported retained earnings of $2,172,000. In 2020, Pronghorn discovered that 2019 depreciation expense was understated by $434,400. In 2020, net income was $898,000 and dividends declared were $202,000. The tax rate is 20%.

a 2020 retained earnings statement for Pronghorn Company.

PRONGHORN COMPANY

Retained Earnings Statement

For the Year Ended December 31, 2020

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