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Zorro Enterprises began operations in 2017 and has been using a LIFO valuation method for inventory. For a justifiable reason, Zorro has decided to switch to the FIFO method in 2020. The Cost of Goods Sold amounts for 2017-2020 are given below for both the LIFO and FIFO methods. Ignoring taxes, what is the amount of the adjusting entry (as a positive number; don't worry about whether it is a debit or a credit) to Retained Earnings at the beginning of 2020 to reflect this change in accounting principle? If a piece of equipment with a five-year life was purchased but the cost was inadvertently recorded as an expense, what would be the affect on the balance sheet at the end of the second year after the purchase (assuming the error has not been found or corrected)? Assets would be understated, and stockholders' equity would be understated. Assets would be understated, and stockholders' equity would be overstated. Assets would be overstated, and stockholders' equity would be overstated. Assets would be overstated, and stockholders' equity would be understated. If a liability account is understated because of an error that was made in the current year, which of the following could not be an additional result of the error? A stockholders' equity account is overstated. A stockholders' equity account is understated. An asset account is understated. Another liability account is overstated