At January 1, 2019, Cheng Ltd. reported retained earnings of 20,000,000. In 2019, Cheng discovered that 2018

Question:

At January 1, 2019, Cheng Ltd. reported retained earnings of ¥20,000,000. In 2019, Cheng discovered that 2018 depreciation expense was understated by ¥4,000,000. In 2019, net income was ¥9,000,000 and dividends declared were ¥2,500,000. The tax rate is 40%. Prepare a 2019 retained earnings statement for Cheng Ltd.