Snoopy Inc. acquired a packaging machine from Red Barron Corporation. Red Barron completed construction of the machine on January 1, 2019. In payment for the machine Snoopy issued a three-year installment note to be paid in three equal payments at the end of each year. The payments include interest at the rate of 15%. Red Barron made a conceptual error in preparing the amortization schedule, which Snoopy failed to discover until 2021. As a result of the error, Snoopy understated interest expense by $50,000 in 2019 and $45,000 in 2020. Snoopy should account for the error: O Prospectively. O None of the options listed. Retrospectively. O No adjustment is needed. As part of its executive compensation plan, Marina Inc. granted 66,000 of its no-par common shares to executives, subject to forfeiture if employment is terminated within three years. Marina's common shares have a market price of $9 per share on January 1, 2020, the grant date of the restricted stock award, as well as on December 31, 2021. 700,000 shares were outstanding at January 1, 2021. Net income for 2021 was $280,000. Compute Marina's diluted earnings per share for the year ended December 31, 2021. $0.38 O $0.31 O $0.35 O None of the options listed. O $0.40 At the end of 2020, Summer-break-is-almost-here Corp. failed to accrue interest of $8,900 on a note receivable. At the beginning of 2021, when the company received the cash, it was recorded as interest revenue. What would be the effect of the error on the income statement and the balance sheet in the 2020 financial statements? O Net Income understated; Retained earnings overstated. Net Income understated; Assets understated. None of the options listed. O Revenue understated; Assets overstated. O Assets overstated; Retained earnings overstated. Which of the following meets the criteria for classification as a finance lease? O The lease term is 2 years, and the asset's economic life is 8 years. O The lessee has the option of acquiring the asset during or at the end of the lease term at a price of fair value plus 10%. O The present value of the minimum lease payments is approximately 50% of the fair value of the leased asset. O At the end of the lease term, the asset has no alternative future use. None of the options listed