MC39. In 2022, Mask Company discovered some goods sold in 2021 had been erroneously included in inventory on December 31, 2021 in the total amount of P150,000. The company's accounting records for 2022 show sales of P2,400,000, cost of goods sold of P1,520,000 (including P150,000 for the error in its opening inventory), expenses other than the cost of goods sold of P480,000, and income taxes of P80,000. Cash dividends of P80,000 were declared on December 20, 2022. (Income tax rate is 20%) In 2021, Mask Company reported sales of P1,470,000, cost of goods sold of P1,000,000, selling and administrative expenses of P130,000, and profit after tax of P272,000. January 1, 2021 retained earnings of Mask Company was P300,000. Assume no other transaction affected its equity during 2021. In Mask Company's statement of comprehensive income for the year 2022 with a comparative statement for 2021, how much is the restated profit for the year 2021? 

a. P272,000 

b. P152,000 

C. P392,000 

d. P176,000 

MC40. What is the amount of retained earnings reported in Mask Company's statement of changes in equity on December 31, 2022? a. P685,000 b. P605,000 C. P692,000 d. P812,000