Simmons Corporation Reports the Following Information: Correction of Understatement of Depreciation

question 37

Multiple Choice

Simmons Corporation reports the following information: Correction of understatement of depreciation expense $\begin{array}{lr}\text { in prior years, net of tax } & 430,000 \\\text { Dividends declared } & 320,000 \\\text { Net income } & 1,000,000 \\\text { Retained earnings, 1/1/07, as reported } & 2,000,000\end{array}$ Simmons should report retained earnings, 12/31/07, as adjusted at

• A)$1,570,000.
• B)$2,250,000.
• C)$2,680,000.
• D)$3,110,000.

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Definitions:

Psychological Wants

Desires primarily based on emotional or mental fulfillment rather than basic survival or physiological needs.

Innate Tendency

Inborn or natural behaviors and characteristics that are genetically programmed, not learned from experience.

Rooting And Sucking

Rooting and sucking are innate reflexes seen in newborns, where rooting helps them find food by turning their head toward stimuli and sucking is the reflex that allows them to suckle.

Drive-Reduction Theory

A theory in psychology that explains motivation as being driven by the desire to reduce internal tensions caused by unmet needs.