At January 1, 2008, William R. Monat Company reported retained earnings of $2,000,000. In 2008, Monat discovered

Question:

At January 1, 2008, William R. Monat Company reported retained earnings of $2,000,000. In 2008, Monat discovered that 2007 depreciation expense was understated by $500,000. In 2008, net income was $900,000 and dividends declared were $250,000. The tax rate is 40%. Prepare a 2008 retained earnings statement for William R. Monat Company.