q5

McLennan Company had the following errors over the last two years: 2019: Ending inventory was overstated by $39.000 while depreciation expense was overstated by 524,400. 2020: Ending inventory was understated by $12.000 while depreciation expense was understated by 57400. By how much should retained earnings be adjusted on January 1, 2021? (ignore taxes) Decrease by 529.000 Decrease by $15.000 Increase by $29.000. Increase by 527,000. Moving to another question will save this response