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1.ABC Company overstated 20Y1 revenue by $10,000. The error also affected 20Y2 by overstating revenue by $5,000. The company discovered the error in 20Y3, which included an overstatement to revenue of $3,000.The company reports only 20Y3 on the current income statement and has a 30% tax rate. Determine the PPA the company should record to correct the error. () represents a decrease to beginning retained earnings.
1. $(12,600)
2. $(7,000)
3. $(10,500)
4. $(15,000)
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