Question: On July 9, 2014, Silver Fox Enterprises Inc. discovered it had recorded the $75,000 purchase of land as legal expense on November 8, 2013. The

On July 9, 2014, Silver Fox Enterprises Inc. discovered it had recorded the $75,000 purchase of land as legal expense on November 8, 2013. The company had reported retained earnings of $573,500 at its previous year end, December 31, 2013.
During 2014, Silver Fox had profit of $193,000 and it declared and paid cash dividends of $216,000. Silver Fox has a 25% income tax rate.
Instructions
(a) Prepare the journal entry to correct the error.
(b) Assuming the company reports under ASPE, prepare a statement of retained earnings.
(c) If Silver Fox uses IFRS, what are the differences in how it would present this information?

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