3) Delta bought equipment on 1/1/15 at a cost of $525. The equipment has a useful life of 7 years and no salvage value. The full cost of the equipment was mistakenly expensed immediately as repairs and maintenance expense. A. Assume 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?)

B Assume the error was discovered on 1/1/17. Because of the error, is net income for 2015 correct or incorrect (if incorrect, is it too high or too low and by what amount?)

C Assume the error was discovered on 1/1/17. Because of the error, is net income for 2016 correct or incorrect (if incorrect, is it too high or too low and by what amount?)

D Now assume, instead, that the error was caught on 1/1/18. Because of the error, are total assets on 1/1/18 correct or incorrect? (if incorrect, are they too high or too low and by what amount?)

E Now assume that the error is not discovered until 1/1/24, are R.E. and total assets correct or incorrect on 1/1/24? (if incorrect, are they too high or too low and by what amount?)