Correcting errors in income statement transactions Broyo Corporation (Brow), a large paper company, reported the following income statement for its year ended December 31, 2008. Broyo applies IFRS and reports its results in millions of euros. Broyo supplied additional information about the following six transactions or events that happened during 2008, with all euro amounts reported in million.
a. On October 5, 2008, Broyo signed a signed agreement with Office Supplies International. The agreement calls for delivery of 50,000 boxes of paper at a total price of ‚¬200. On this date, Broyo recognized revenues of ‚¬200, and recognized cost of sales of ‚¬160. No deliveries under the contract had occurred by December 31, 2008.
b. On October 18. 2008. Brow signed a contract with a customer for ‚¬45. The customer provided a cash deposit at this time of ‚¬20, which Broyo recorded as revenues. Broyo did not recognize any expenses on October 18, 2008.
c. Broyo fulfilled all terms of the contract in part b on November 28, 2008. Broyo€™s cost of the inventory delivered was ‚¬36. Because Broyo had recorded revenues in October, it made no entry on November 28.
d. During the fourth quarter of 2008, Broyo spent ‚¬11 on research and development. Those expenditures, which were focused on creating a new waterproof paper, were unsuccessful. Broyo capitalized the ‚¬11 as a development asset, which it plans to amortize, beginning in 2009, over 10 years.
e. On December 1, 2008. Broyo delivered to a customer ‚¬266 of paper products, with a cost of ‚¬250. The customer promised to pay Broyo in January 2009. Because Broyo had not received the cash by December 31, 2008, ii did not record anything for this transaction.
f. On December 5, 2008, Broyo sold one of its pulp plants for ‚¬100. Prior to the sale, the pulp plant had a balance sheet carrying value of ‚¬80. Broyo recorded the transaction as follows: debited cash for ‚¬100, debited plant and equipment for ‚¬80, credited cost of goods sold for ‚¬80, and credited revenues for ‚¬100.
For each transaction, determine whether revenues and expenses are overstated or understated. Ignore income taxeffects.

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2008 € 4,221 Net Sales.. Cost of Products Sold (3,110) € 1,111 Gross Profit Selling, General, and Administrative Expenses Other Operating Income, net Share in Profits of Associated Companies . (794) 17 Operating Profit ... Financial Income and Expenses, net € 335 (43) € 292 Profit on Continuing Operations, before tax ...... Income Taxes .. (72) € 220 Profit from Continuing Operations, after tax ..... Profit from Discontinued Operations, net of tax.... ...... 17 ...... Profit .... 237 Portion of Profit Owned by Minority Interests Portion of Profit Owned by Shareholders 236