What sticky retained earnings as of december would be

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Problem 1: In 2011, due to a change in marketing forecasts, Sticky Corporation reduced the projected life of its patent for producing round dice. The cumulative patent amortization prior to 2011 would have been $10 million higher had the new life been used. Sticky's tax rate is 30%. Sticky's retained earnings as of December 31, 2011, would be:

a) Overstated by $10 million.
b) Unaffected.
c) Overstated by $7 million.
d) None is correct.
e) Overstated by $3 million.

Reference no: EM132794367

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