Question: Assume the 2014 ending inventory was understated by 50 000 Explain
Assume the 2014 ending inventory was understated by $50,000. Explain how this error would affect the 2014 and 2015 pretax income amounts. What would be the effects if the 2014 ending inventory were overstated by $50,000 instead of understated?
Answer to relevant QuestionsDescribe the relationship between the expense matching principle and accounting for long-lived assets.Garrett Company had the following activities for the year ended December 31, 2015: Sold land that cost $20,000 for $20,000 cash; purchased $181,000 of equipment, paying $156,000 in cash and signing a note payable for the ...Strong Metals Inc. purchased a new stamping machine at the beginning of the year at a cost of $950,000. The estimated residual value was $50,000. Assume that the estimated useful life was five years, and the estimated ...At the end of the annual accounting period, December 31, 2014, O’Connor Company’s records reflected the following for Machine A:Cost when acquired ..... $30,000Accumulated depreciation .. 10,200During January 2015, the ...During 2014, Rank Company disposed of three different assets. On January 1, 2014, prior to their disposal, the accounts reflected the following:The machines were disposed of in the following ways:a. Machine A: Sold on ...
Post your question