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At the end of the current year, a company overstated prepaid insurance by $72,000 and understated supplies expense by $114,000. Its effective tax rate is

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At the end of the current year, a company overstated prepaid insurance by $72,000 and understated supplies expense by $114,000. Its effective tax rate is 35%. As a result of this error, net income is: Multiple Choice Oveestated by $120,900 O Understated by $27300 Understated by $120,000 Overstated by $27300

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