Question
A companys beginning inventory for 2005 was overstated by $37,000, and the ending inventory for 2005 was understated by $16,000. The income tax rate for
A companys beginning inventory for 2005 was overstated by $37,000, and the ending inventory for 2005 was understated by $16,000. The income tax rate for the company is 30%. These errors will cause the 2005 net income to be...
A. Understated by $14,700
B. Understated by $37,100
C. Overstated by $14,700
D. Overstated by $37,100
The answer key says that B. $37,100 is the answer, but I don't know how to get that. Please help!
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Auditing And Assurance Services A Systematic Approach
Authors: William Messier, Steven Glover, Douglas Prawitt
5th Edition
007333720X, 9780073337203
