A company failed to record unrealized gains of $38 million on its available for sale debt security investments. Its tax rate is 30%. As a result of this error, comprehensive income would be (Round million answer to 2 decimal places.):

Multiple Choice

• Understated by $26.60 million.

• Understated by $11.40 million.

• Understated by $38.00 million.

• Unaffected.

Due to an error in computing depreciation expense, Prewitt Corporation overstated accumulated depreciation by $13 million as of December 31, 2018. Prewitt has a tax rate of 35%. Prewitt's retained earnings as of December 31, 2018, would be (Round million answer to 2 decimal places.):

Multiple Choice

• Understated by $8.45 million.

• Overstated by $4.55 million.

• Overstated by $8.45 million.

• Understated by $4.55 million.