In 2009 Cummings Company, which is subject to a 30 percent tax rate, recognized interest revenue of

Question:

In 2009 Cummings Company, which is subject to a 30 percent tax rate, recognized interest revenue of $ 15,000. In January 2010, the accountant discovered that the correct amount of interest revenue for 2009 was $ 25,000. What is the effect of this error on the 2010 statement of owners’ equity?