Unsure Inc made a very large arithmetical error in the preparation of its year-end financial statements by incorrect placement of a decimal point in the calculation of depreciation. The error caused the net income to be reported at almost double the correct amount. When Unsure discovered the error in the following year, correction of the error should be treated as an) gain for the year in which the error was made. component of income for the year in which the error is discovered, but separately listed on the income statement and fully explained in a note to the financial statements. adjustment to beginning retained earnings, net of tax. increase in depreciation expense for the year in which the error is discovered. Rudolph Corporation reports the following information: Net income Dividends on common shares Dividends on preferred shares Weighted average common shares outstanding $900,000 $252.000 $ 90,000 300,000 Rudolph should report earnings per share of $1.86. $2.16. $2.70. $3.00. Regarding presentation of expenses by nature versus function, function refers to the name of the cost centre responsible for the expense. the type of expense, such as depreciation, purchases, or employee benefits. the business activity to which the expense relates. whether the expense actively contributed to the generation of income