Chapter $4-$ Error Practice

On January $1,2020,$ Strong Inc. posted a repair expense bill of $$90,000$ to the land account instead of the repair expense account. You are the new accountant for this business and you are in the process of preparing the $2022$ financial statements when you notice that the $$90,000$ expenditure was recorded incorrectly in $2020.$ The tax rate is $35\%.$ The unadjusted balance in retained earnings at January $1,2022$ was $$500,000.$ The company had a net income of $$250,000$ and paid dividends of $$25,000$ during $2022.$

Required:

a$)$ Calculate the earnings correction that Strong must show in the $2022$ financial statements.

b$)$ Prepare the $2022$ entry to record the correction of the $2020$ error.