In 2013, Due to a Change in Marketing Forecasts, Barney

Multiple Choice

In 2013, due to a change in marketing forecasts, Barney Corporation reduced the projected life of its patent for producing round dice. The cumulative patent amortization prior to 2013 would have been $10 million higher had the new life been used. Barney's tax rate is 30%. Barney's retained earnings as of December 31, 2013, would be:

A) Overstated by $7 million.
B) Overstated by $3 million.
C) Overstated by $10 million.
D) UnaffecteD.This is a change in estimate.No prior period adjustment is needed.