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At Iserlohn Company, events and transactions during 2011 included the following.The tax rate for all items is 30 percent.
(1) Amortization for 2009 was found to be understated by $30,000.
(2) A strike by the employees of a supplier resulted in a loss of $20,000.(3) The inventory at December 31, 2009 was overstated by $40,000.
(4) A flood destroyed a building that had a book value of $400,000.Floods are very uncommon in that area.
-The effect of these events and transactions on the beginning balance of 2011 retained earnings would be
A)$14,000.
B)$294,000.
C)$21,000.
D)$343,000.

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Use the following information for questions 
At Iserlohn Company, events and transactions during 2011 included the following.The tax rate for all items is 30 percent.
(1) Amortization for 2009 was found to be understated by $30,000.
(2) A strike by the employees of a supplier resulted in a loss of $20,000.(3) The inventory at December 31, 2009 was overstated by $40,000.
(4) A flood destroyed a building that had a book value of $400,000.Floods are very uncommon in that area.
-The effect of these events and transactions on the beginning balance of 2011 retained earnings would be
A)$14,000.
B)$294,000.
C)$21,000.
D)$343,000.

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The Answer of Use the following information for questions 
At Iserlohn Company, events and transactions during 2011 included the following.The tax rate for all items is 30 percent.
(1) Amortization for 2009 was found to be understated by $30,000.
(2) A strike by the employees of a supplier resulted in a loss of $20,000.(3) The inventory at December 31, 2009 was overstated by $40,000.
(4) A flood destroyed a building that had a book value of $400,000.Floods are very uncommon in that area.
-The effect of these events and transactions on the beginning balance of 2011 retained earnings would be
A)$14,000.
B)$294,000.
C)$21,000.
D)$343,000.

Use the Following Information for Questions