When drafting the 20.8 financial statements, it was brought to the attention of the management of Harvey (Pty) Ltd that certain items were erroneously included in inventory at 31 December 20.7. These items, with a value of R 1125000 had been sold before the 20.7 year end. The following financial information is available: Retained earnings at 1 January 20.7 was R 21875000 . Cost of sales for 20.7 includes the R 1125000 error in opening inventory. An income tax rate of 28% applies for the 20.8 and 20.7 year. Required: Show the impact of the error in the statement of profit or loss and retained earnings for the 20.8 financial statements. Comparatives are required