Hi,

Could you please help me with this exercise?

X Company had retained earnings of$56,000 as January 1, 2017. In 2017 X Company had sales of $160,000, COGS of $96,000, and other operating expenses, excluding taxes, of $32,000. In 2017, X Company discovered that it had, in error, depreciated land over the last three years resulting in a balance in the accumulated depreciation account of $40,000. The assumed tax rate for X Company is 40%. Present in proper form a statement of retained earnings for the year ended December 31, 2017.

Thank you!