$1-$Due to an error in computing depreciation expense, Crote Corporation understated accumulated depreciation by $$54$ million as of December $31,2024.$ Crote has a tax rate of $20\%.$ Crote's retained earnings as of December $31,2024,$ would be:

Note: Round million answer to $2$ decimal places.

Multiple Choice

overstated by $$54\mathrm{.}00$ million.

understated by $$43\mathrm{.}20$ million.

overstated by $$43\mathrm{.}20$ million.

understated by $$54\mathrm{.}00$ million.

$2-$C Company reported a retained earnings balance of $$360,000$ at December $31,2023.$ In September $2024,$ C determined that insurance premiums of $$84,000$ for the three$-$year period beginning January $1,2023,$ had been paid and fully expensed in $2023.$ C has a $20\%$ income tax rate. What amount should C report as adjusted beginning retained earnings in its $2024$ statement of retained earnings?

Multiple Choice

$$416,000$

$$388,000$

$$404,800$

$$427,200$