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monitta
3 years ago
7

9-10. Armstrong Inc. is a calendar-year corporation. Its financial statements for the years ended 12/31/14 and 12/31/15 containe

d the following errors: 2014 2015 Ending inventory $25,000 overstatement $40,000 understatement Depreciation expense 10,000 understatement 20,000 overstatement 9. Assume that the 2014 errors were not corrected and that no errors occurred in 2013. By what amount will 2014 income before income taxes be overstated or understated? a. $35,000 overstatement b. $15,000 overstatement c. $35,000 understatement d. $15,000 understatement
Business
1 answer:
IceJOKER [234]3 years ago
5 0

Answer:

Consider the following explanation

Explanation:

If these error are nit corrected, the income before taxes be overstated by $ 35,000 .

As, Overstatement of Ending Inventory will affect the gross profit (Increase) by $ 25,000 and then understatement of Depreciation will further increase Net Profit by $ 10,000

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Consider a monopolist currently selling output Q to two different markets: Market A and Market B. This monopolist is able to pri
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3 years ago
he Presley Corporation is about to go public. It currently has aftertax earnings of $7,000,000, and 2,000,000 shares are owned b
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<em>b. Compute the earnings per share immediately before the stock issue. (Do not round intermediate calculations and round your answer to 2 decimal places.) Earnings per share</em>

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3 0
3 years ago
Analysis of Receivables Method At the end of the current year, Accounts Receivable has a balance of $420,000; Allowance for Doub
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Answer and Explanation:

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= $403,600

8 0
3 years ago
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