40In 2020, Nike discovered that equipment purchased on January 1, 2019, for $63,000 was expensed at that time. The equipment should have been depreciated over 6 years using the straight-line method, with a $6,600 value. The effective tax rate is 40%. When preparing the 2020 correcting entry, Retained Earnings would be credited by what amount?

Select one: a. $63,000 b. $9,400 c. $21,440 d. $32,160

47For leases accounted for as operating leases Select one: a. the lessee continues to use the effective-interest method for amortizing the lease liability. b. the lessee continues to use its preferred method for amortizing the right-to-use asset. c. at the end of each period, the lessee reports the net amount of the lease liability and the right-to-use asset (either as an asset or a liability) on its balance sheet. d. the lessee is required to use the straight-line method for amortizing the right-to-use asset.