Kasper company includes three years in the statement of shareholders’ equity in its annual report. during year 4, management corrected an error that had understated the net income reported in year 1 by $10,000. how should kasper reflect the correction of this error in the statement of shareholders’ equity included in its year 4 annual report?
(a) a change in reporting entity should be reported in year 4
(b) a prtor perlod adjustment to the beginning-of the-year retsined earnings balance shouild be reported in the year 2 amount
(c) a prior pertod adjuctmant to the beginning-cf the-year rerained earnings balance shouid be repoted in the year 3 amoun
(d) a prior period adjustment to the beginning-of the-year retained oarnings balance shouid be reported in the year 4 amount
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Kasper company includes three years in the statement of shareholders’ equity in its annual report. d...
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