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XYZ Corp. is a calendar-year corporation whose financial statements for 2019 and 2020 included errors as follows: Assume that purchases were recorded correctly and that

XYZ Corp. is a calendar-year corporation whose financial statements for 2019 and 2020 included errors as follows: Assume that purchases were recorded correctly and that no correcting entries were made at December 31, 2019 or December 31, 2020. Ignoring income taxes, by how much should XYZ 's retained earnings be retrospectively adjusted at January 1,2021 ? a. $4,000 decrease b. $32,000 increase

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