Question: ****** Build a table for this quistion ****** The retained earnings statement of XYZ Corporation on 31 st December 2021 had the following balances: Balance,

****** Build a table for this quistion ******

The retained earnings statement of XYZ Corporation on 31st December 2021 had the following balances:

Balance, January 1

SAR 165,000

Net income

35,000

Dividends

(20,000)

Balance, December 31

$ 180,000

However, before issuing the report for the year ended December 31, 2021, it discover a SAR 20,000 error undervalued inventory that overstated the net income to be higher in 2020 and overvalued depreciation amount of $5,000 which understated net income in 2020. How would this discovery have an impact on the reporting of the Statement of Retained Earnings for 2021? ? (Marks 3)

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