Question
The Blossom Corporation is a calendar-year corporation. Its financial statements for the years 2021 and 2020 contained errors as follows: 2021 Ending Inventory Overstated $9,000
The Blossom Corporation is a calendar-year corporation. Its financial statements for the years 2021 and 2020 contained errors as follows:
2021 Ending Inventory Overstated $9,000 Depreciation Expense Understated $6,000
2020 Ending Inventory Overstated $24,000 Depreciation Expense Overstated $18,000
Assume that the proper correcting entries were made at December 31, 2020. By how much will 2021 income before taxes be overstated or understated?
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Financial Accounting An Integrated Approach
Authors: Michael Gibbins
6th Edition
0176407251, 978-0176407254
