Question: RE ( Jan 1 ) = 5000 We discover that 7 years ago we understated expenses by $3,000. Tax rate is .20 1) Debit or

RE ( Jan 1 ) = 5000

We discover that 7 years ago we understated expenses by $3,000.

Tax rate is .20

1) Debit or credit adjustment?

2) How much

3) Find corrected RE ( Jan 1 ) Balance

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