Question
Texas Inc. is a calendar-year corporation. Its financial statements for the years ended 12/31/20 and 12/31/21 contained the following errors: 2020 2021 Interest Expense $40,000
Texas Inc. is a calendar-year corporation. Its financial statements for the years ended 12/31/20 and 12/31/21 contained the following errors:
2020 2021
Interest Expense $40,000 understatement $60,000 overstatement
Depreciation expense 15,000 understatement 40,000 overstatement
Assume that the 2021 errors were not corrected and that no errors occurred in 2019.
By what amount will 2021 income before income taxes be overstated or understated?
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Forensic Accounting And Fraud Investigation For Non-Experts
Authors: Stephen Pedneault, Frank Rudewicz, Howard Silverstone, Michael Sheetz
3rd Edition
0470879599, 9780470879597
