After restatement, Stomence's retained earnings at 1 January 2024 amount to 2,337,500. Published 2024 profit is 410,000; the new policy increases it by 14,000 before tax (rate of 25 %, case data). Dividends of 120,000 were paid in 2024. Compute restated 2024 profit and restated retained earnings at 31 December 2024.
- Restated retained earnings at 1 January 2024
- 2,337,500
- Published 2024 profit
- 410,000
- 2024 pre-tax effect
- 14,000
- Tax rate
- 25 %
- 2024 dividends
- 120,000