In 2014,a Company Discovered That $20,000 of Equipment Purchased on January

Multiple Choice

In 2014,a company discovered that $20,000 of equipment purchased on January 1,2011,was expensed in full.The equipment has a ten-year life,no residual value,and should have been depreciated on the straight-line basis.The error is corrected.As a result,the comparative 2013 and 2014 financial statements will show what amounts as adjustments to the beginning balances of retained earnings dated: 1/1/2013 1/1/2014

A) $14,000 $14,000
B) $16,000 $0
C) $0 $14,000
D) $16,000 $14,000