Before the 20X1 books are closed, you discover that on Jan. 2, 20X1, when a new machine was purchased for $20000, the $20000 was debited to Machinery Maintenance Expense. The new machine, which is being depreciated under the straight line method, has a 10 year life and no estimated salvage value. However, because of the error, no depreciation was recorded for the year. If no correction is made......

A.) net income for 20X1 will be understated by $18000 B.) net income for 20X1 will be understated by $2000 C.) total assets on December 31, 20X1 balance sheet will be understated by $20000 D.) the trial balance will not balance