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II. Problem Solving Questions (total 75 points: must show vour work and computation) Question 1 (15 points). Presented below are the comparative retained earnings statements

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II. Problem Solving Questions (total 75 points: must show vour work and computation) Question 1 (15 points). Presented below are the comparative retained earnings statements for Stambough Inc, for the years 202 and 203. In 203, the company discovered that it failed to record $21,800 of depreciation expense in 202 on a newly constructed building. The company correctly included the depreciation expense in its tax return and correctly reported its income taxes payable. Assume tax rate is 25%. Required a. Prepare the proper correcting entry in 203. ( 9 points) b. Complete the revised retained earnings statement for 20X2 and 20X3, assuming comparative statements as follows. ( 6 points)

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