Use the Following Information for Questions 25-26

question 1

Multiple Choice

Use the following information for questions 25-26.
On January 2, 2018, Moose Corp. purchased machinery for $ 270,000. The entire cost was incorrectly recorded as an expense. The machinery has a nine-year life and a $ 18,000 residual value. Beaver uses straight-line depreciation for all its plant assets. The error was not discovered until May 1, 2020, and the appropriate corrections were made. Ignore income tax considerations.
-Before the corrections were made, retained earnings was understated by

• A) $ 270,000.
• B) $ 242,000.
• C) $ 214,000.
• D) $ 186,000.

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Definitions:

Emancipation

The act of freeing someone from slavery, servitude, or constraint.

Public School System

A government-funded educational system accessible to all children within a country or region, providing free primary and secondary education.

Educational Opportunities

Access to and the provision of various levels of schooling and learning environments, often viewed in terms of availability and quality.

Black Fraternal Organization

A group or society formed by African Americans that provides social support, community service, and brotherhood or sisterhood among its members.