Use the Following Information for Questions 64 and 65

question 31

Multiple Choice

Use the following information for questions 64 and 65.
Link Co. purchased machinery that cost $1,800,000 on January 4, 2013. The entire cost was recorded as an expense. The machinery has a nine-year life and a $120,000 residual value. The error was discovered on December 20, 2015. Ignore income tax considerations.
-Before the correction was made, and before the books were closed on December 31, 2015, retained earnings was understated by

• A) $1,800,000.
• B) $1,613,333.
• C) $1,426,667.
• D) $1,240,000.

---

Definitions:

Self-Talk

The internal dialogue that an individual has with oneself, which can influence their mindset and behavior.

Compassion Fatigue

A condition characterized by emotional and physical exhaustion leading to a diminished ability to empathize or feel compassion for others, often experienced by those in the caring professions.

Social Worker

A professional dedicated to helping individuals, families, and communities cope with challenges and improving their well-being.

Biofeedback

A technique that teaches individuals to control bodily functions, such as heart rate, using monitoring devices to provide feedback on physiological states.