Use the Following Information for Questions

question 17

Multiple Choice

Use the following information for questions.
Fairfax Inc. began operations on January 1, 2019. Financial statements for 2019 and 2020 contained the following errors: In addition, on December 31, 2020 fully depreciated equipment was sold for $ 7,200, but the sale was NOT recorded until 2021. No corrections have been made for any of the errors. Ignore income tax considerations.
-The total effect of the errors on Fairfax's retained earnings at December 31, 2020 is that the balance is understated by

• A) $ 82,200.
• B) $ 67,200.
• C) $ 46,200.
• D) $ 34,200.

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Definitions:

Symptoms

Signs or manifestations of an illness or condition, often used to diagnose and treat diseases.

Autism

A developmental disorder characterized by difficulties in social interaction and communication, along with restricted and repetitive patterns of behavior or interests.

Dimensional Approach

A method of understanding psychiatric disorders along a continuum rather than as categorical, distinct types.

Asperger's Syndrome

A developmental disorder characterized by difficulties in social interaction and nonverbal communication, along with restricted and repetitive patterns of behavior and interests.