AICPA.93IIIOPAR-PI-PA Conn Co. reports a retained-earnings balance of $400,000 at December 31, 2004. In August 2005, Conn determines that insurance premiums of $60,000 for the threeyear period beginning January 1,2004 had been paid and fully expensed in 2004. Conn has a 30% income tax rate. What amount should Conn report as adjusted beginning retained earnings in its 2005 statement of retained earnings? $420,000$428,000$440,000$442,000 16 AICPA.061216FAR Mellow Co. depreciates a $12,000 asset over five years, using the straight-line method with no salvage value. At the beginning of the fifth year, it is determined that the asset will last another four years. What amount should Mellow report as depreciation expense for year five? $600$900$1,500$2,400