Use the Following Information for Questions 25-26

question 39

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.
-Moose's income statement for the year ended December 31, 2020 would show the cumulative effect of this error in the amount of:

• A) $ 0.
• B) $ 186,000.
• C) $ 214,000.
• D) $ 242,000.

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Definitions:

Sustainability

The ability to maintain or improve resources or processes in a way that does not deplete the underlying environmental, social, or economic systems.

Depleting Resources

Natural resources that are diminishing due to usage or exploitation faster than they are replenished.

Natural Resources

Physical materials and substances occurring naturally in the environment that can be used for economic gain, such as water, minerals, forests, and fossil fuels.

Due Process

The fair treatment through the normal judicial system, especially as a citizen's entitlement.