Question: Due to an error in computing depreciation expense, Crote Corporation understated accumulated depreciation by $ 6 0 million as of December 3 1 , 2

Due to an error in computing depreciation expense, Crote Corporation understated accumulated depreciation by $60 million as of December 31,2024. Crote has a tax rate of 25%. Crote's retained earnings as of December 31,2024, would be:
Multiple Choice
overstated by $45 million.
understated by $45 million.
overstated by $15 million.
understated by $15 million.

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