1)Alpha bought equipment on 1/1/15 at a cost of $350,000. The equipment has a useful life of 7 years and no salvage value. The accountant recording the purchase charged the full amount to repairs and maintenance expense. The error was discovered on 1/1/17. Because of the error, is retained earnings on 1/1/17 correct or incorrect? (if incorrect, is it too high or too low and by what amount?)

2)How about the balance of total assets on 1/1/17 because of the error? Because of the error, are total assets on 1/1/17 correct or incorrect? (if incorrect, are they too high or too low and by what amount?)

3)Now assume that the error is not discovered until 1/1/25, are R.E. and total assets still wrong on 1/1/25?