On January 2, 20x5, Beaver Corp. purchased machinery for $135,000. The entire cost was incorrectly recorded as an expense. The machinery has a nine-year life and a $5,000 residual value. Beaver uses straight-line depreciation for all its plant assets. The error was not discovered until 20x7, and the appropriate corrections were made. Ignore income tax considerations. Before the corrections were made, Calculate retained earnings. 

Answer rating: 100% (QA)

To calculate the retained earnings we first need to correct the depreciation expen... View the full answer