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Due to an error in computing depreciation expense, Crote Corporation understated accumulated depreciation by $64 million as of December 31, 2018. Crote has a tax
Due to an error in computing depreciation expense, Crote Corporation understated accumulated depreciation by $64 million as of December 31, 2018. Crote has a tax rate of 40%. Crote's retained earnings as of December 31, 2018, would be (Round million answer to 2 decimal places.):
Multiple Choice
Overstated by $64.00 million.
Overstated by $38.40 million.
Understated by $64.00 million.
Understated by $38.40 million.
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