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Carla Vista Company purchased equipment that cost $ 3 9 8 0 0 0 0 on January 1 , 2 0 2 3 . The

Carla Vista Company purchased equipment that cost $3980000 on January 1,2023. The entire cost was recorded as an expense. The equipment had a 9-year life and a $122000 residual value. Carla Vista uses the straight-line method to account for depreciation expense. The error was discovered on December 10,2025. Carla Vista is subject to a 20% tax rate. Before the correction was made and before the books were closed on December 31,2025, retained earnings was understated by (Round intermediate calculations to 0 decimal places, e.g.25,000.)
$2376134.
$2498134.
$3184000.
$2155200.
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