Question
Carla Vista Inc. is a calendar-year corporation. Its financial statements for the years 2023 and 2022 contained errors as follows: 2023 2022 Ending inventory
Carla Vista Inc. is a calendar-year corporation. Its financial statements for the years 2023 and 2022 contained errors as follows: 2023 2022 Ending inventory $8100 overstated $17800 overstated Depreciation expense $6000 understated $11100 overstated Assume that the proper correcting entries were made at December 31, 2022. By how much will 2023 income before taxes be overstated or understated?
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Intermediate Accounting
Authors: David Spiceland
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