Error in computing depreciation expense

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Reference no: EM131266762

Due to an error in computing depreciation expense, Crote Corporation understated accumulated depreciation by $78 million as of December 31, 2016. Crote has a tax rate of 35%. Crote's retained earnings as of December 31, 2016, would be (Round million answer to 2 decimal places.):

Overstated by $50.70 million.

Understated by $50.70 million.

Understated by $78.00 million.

Overstated by $78.00 million.

Reference no: EM131266762

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