Chouchou Company's statements for 2024 and 2025 included the following errors: December 31, 2024 inventory understated 2,000,000 December 31, 2025 inventory overstated 1,000,000 Depreciation for 2024...


Chouchou Company's statements for 2024 and 2025 included the following errors:





















December 31, 2024 inventory understated2,000,000
December 31, 2025 inventory overstated1,000,000
Depreciation for 2024 understated400,000
Depreciation for 2025 overstated800,000

How much should retained earnings be retroactively adjusted on January 1, 2026?


A. 1,400,000 increase


B. 1,400,000 decrease


C. 600,000 increase



Jun 02, 2022
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