Problem:
Portman Corporation has retained earnings of $693,600 at January 1, 2014. Net income during 2014 was $1,491,000, and cash dividends declared and paid during 2014 totaled $83,700. Prepare a retained earnings statement for the year ended December 31, 2014.
Required:
Question: Assume an error was discovered: land costing $87,490 (net of tax) was charged to maintenance and repairs expense in 2011.
Note: Please show how to work it out.