Malvane overstated its 2023 revenue by 80,000 (sale recognised early). It presents 2025 and 2024; its published retained earnings at 1 January 2024 are 3,100,000. The correction gives rise to a tax effect at a rate of 25 % (case data). Compute restated retained earnings at 1 January 2024.
- Published retained earnings at 1 January 2024
- 3,100,000
- 2023 revenue overstatement
- 80,000
- Tax rate
- 25 %