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Business, 17.04.2020 23:07 jmsmith1218

Black, Inc. is a calendar-year corporation whose financial statements for 2014 and 2015 included errors as follows:

Year Ending Inventory Depreciation Expense

2014 $162,000 overstated $135,000 overstated

2015 64,000 understated 45,000 understated

Assume that purchases were recorded correctly and that no correcting entries were made at December 31, 2014, or at December 31, 2015. Ignoring income taxes, by how much should Black's retained earnings be retroactively adjusted at January 1, 2016?

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