At January 1, 2010, Cheng Company reported retained earnings of 20,000,000. In 2010, Cheng discovered that 2009

Question:

At January 1, 2010, Cheng Company reported retained earnings of ¥20,000,000. In 2010, Cheng discovered that 2009 depreciation expense was understated by ¥4,000,000. In 2010, net income was ¥9,000,000 and dividends declared were ¥2,500,000. The tax rate is 40%.

Prepare a 2010 retained earnings statement for Cheng Company.