Use the Following Information for Questions for Pear Limited, Events

question 88

Multiple Choice

Use the following information for questions For Pear Limited, events and transactions during 2015 included the following.The tax rate for all items is 30%. 1) Depreciation for 2014 was found to be understated by $30,000. 2) A strike by the employees of a supplier resulted in a loss of $20,000. 3) The inventory at December 31, 2013 was overstated by $40,000. 4) A flood destroyed a building that had a book value of $400,000.Floods are very uncommon in that area.
-The effect of these events and transactions on the balance of retained earnings at January 1, 2015 would be

• A)$14,000.
• B)$21,000.
• C)$294,000.
• D)$343,000.

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Definitions:

Heart

A muscular organ that pumps blood through the circulatory system by rhythmic contraction and expansion.

Pulmonary Trunk

The major blood vessel that originates from the right ventricle of the heart and bifurcates into the left and right pulmonary arteries, carrying deoxygenated blood to the lungs.

Pulmonary Artery

The artery carrying deoxygenated blood from the right ventricle of the heart to the lungs for oxygenation.

Left Lung

The lung on the left side of the body, which is smaller than the right lung and consists of two lobes to accommodate the heart.