#3

Which of the following statements * 5 points related to corporations is correct? A major error in a period prior to the current period is recorded as an adjustment to the beginning balance in the Retained Earnings account to reflect the error. Operating income on the income statement might include the sale of a segment of the business at a loss. A corporation can increase its net income by repurchasing its shares at a low price and selling shares later at a higher price. Discontinued Operations should not be shown net of tax