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  3. on january 2, 20x5, beaver corp. purchased machine

On January 2, 20x5, Beaver Corp. purchased machinery for $135,000. The entire cost was incorrectly...

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Accounting

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, retained earnings was understated by: Answer: (106,111)

and is this answer corret? And how can I get this answer. Thank you

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