Use the Following Information for the Following Questions

question 76

Multiple Choice

Use the following information for the following questions:
The tax rate for all items is 30%.
1. Depreciation for 2019 was found to be understated by $30,000.
2. A 2020 strike by the employees of a supplier resulted in a loss of $20,000.
3. The inventory at December 31, 2018 was overstated by $40,000.
4. A 2020 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, 2020 would be

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

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Definitions:

Company Information

Details and data related to a business entity, including its financial performance, organizational structure, strategy, and market position.

Outsourcing

The practice of hiring external firms or individuals to perform services or create goods that traditionally were performed in-house.

Security Risks

Potential threats that could compromise the safety and security of individuals, data, or physical assets.

Service Risks

Service risks are potential threats or vulnerabilities that can affect the delivery or quality of services offered by a business or organization.