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A company overstated its liability for warranties by $200,000. Its tax rate is 30%. As a result of this error, income tax expense is: a.

A company overstated its liability for warranties by $200,000. Its tax rate is 30%. As a result of this error, income tax expense is:

a. Unaffected

b. Overstated by $60,000

c. Overstated by $140,000

d. Understated by $60,000

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