Part III (4 points) During 2012 the company discovered the following account errors 1. In July 1 2009, XYZ corporation Acquired an equipment on July 1 2009 at cost of $16000 the estimated useful life for the machine 5 years and the residual value $1000. However, the machine has been mistakenly depreciated based on 4 years instead of 5 years ANSWER: (16000-1000))5=3000 (16000-100014=3750 3750-3000-750 2- Ending inventory for year 2009 was understated by $ 2000 ANSWER: opening inventory overstated 2000 3. Accountant failed to record unrealized gain on non-trading securities of $1000 end of year 2010 ANSWER: unrealized gain 1000 Company subject to income tax rate 20%. Required: A) Show the dollar amount of the combined effect, if any, and the nature of the effect (overstatement or understatement or correct) of these accounting errors on the reporting value of the following financial statement items as in the following table:_use table in the answer sheet) F S items the combined impact reporting value of FS items NI 2009 -2000+750=-1250 Total Assets Dec. 31 2010 750 Owners Equity Dec 31 2010 Gross profit 2010 2000 On ed States Part III (4 points) During 2012 the company discovered the following account errors 1. In July 1 2009, XYZ corporation Acquired an equipment on July 1 2009 at cost of $16000 the estimated useful life for the machine 5 years and the residual value $1000. However, the machine has been mistakenly depreciated based on 4 years instead of 5 years ANSWER: (16000-1000))5=3000 (16000-100014=3750 3750-3000=750 2- Ending inventory for year 2009 was understated by $ 2000 ANSWER: opening inventory overstated 2000 3. Accountant failed to record unrealized gain on non-trading securities of $1000 end of year 2010 ANSWER: unrealized gain 1000 Company subject to income tax rate 20%. Required: A) Show the dollar amount of the combined effect, if any, and the nature of the effect (overstatement or understatement or correct) of these accounting errors on the reporting value of the following financial statement items as in the following table; (use table in the answer sheet) F S items the combined impact reporting value of FS items NI 2009 -2000+750= -1250 Total Assets Dec. 31 2010 750 Owners Equity Dec 31 2010 Gross profit 2010 2000 on sd States 1- In July 1 2009, XYZ corporation Acquired an equipment on July 1 2009 at cost of $16000 the estimated useful life for the machine 5 years and the residual value $1000. However, the machine has been mistakenly depreciated based on 4 years instead of 5 years ANSWER: (16000-1000))5=3000 (16000-1000\4=3750 3750-3000=750 2- Ending inventory for year 2009 was understated by $ 2000 ANSWER: opening inventory overstated 2000 3- Accountant failed to record unrealized gain on non-trading securities of $1000 end of year 2010 ANSWER: unrealized gain 1000 Company subject to income tax rate 20%. Required: A) Show the dollar amount of the combined effect, if any, and the nature of the effect (overstatement or understatement or correct) of these accounting errors on the reporting value of the following financial statement items as in the following table: (use table in the answer sheet) F S items the combined impact reporting value of FS items NI 2009 -2000+750= -1250 Total Assets Dec. 31 2010 750 Owners Equity Dec. 31 2010 Gross profit 2010 2000 on B) Briefly explain the Capital Maintenance Concept (CMC) and the primary difference between the two form of CMC and how they are related to the Income Concept in accounting