25) For the current year California, Inc., is reporting consolidated financial statements. In prior years, California, Inc., reported statements of individual companies. This results in: A) A correction of an error. B) An accounting change that should be reported prospectively. C) An accounting change that should be reported by restating the financial statements of all prior periods presented. D) Neither an accounting change nor a correction of an error. Select one: A B 0 D 26) In the year ending December 31, 2020, California Corporation decreased the estimated useful life of its patent. The total patent amortization for prior years would have been $17 on higher had the new life been used. The applicable tax rate is 35%. California's retained earnings as of December 31, 2020, would be: A) Overstated by $5.95 million. C) Overstated by $17 million. B) Overstated by $11.05 million. D) Unaffected. Select one: A B D 27) The following information relates to California Co. for the year ended December 31, 2020: $ Gain on sale of land Proceeds from sale of land Purchase of Blue, Inc., bonds (face value $210,000) Amortization of bond discount Cash dividends declared Cash dividends paid Proceeds from sales of Red Co. common stock 12,400 21,500 360,000 4,400 92,000 73,000 158,000 In its year end statement of cash flows, what amount should California report as net cash from investing activities? A) $188,500. B) $381,500. C) $326,100. D) $338,500. Select one: O A O B O D 28) California Co. reported rent expense of $233,000 for the current year. The beginning and ending balances in rent payable were $40,000 and $9000, respectively. What was the amount of cash paid for rent? A) $264,000. B) $233,000. C) $202,000. D) $282,000. Select one: A O B D