A company’s financial records show that its annual revenue increased from $1.2 million to $1.8 million over a three-year period. However, upon closer examination, a fraud examiner discovered that the increase in revenue was the result of fraudulent activities by the company’s management. The examiner determined that the actual revenue for the first year was $1.2 million, but the reported revenue for the second and third years were overstated by 20% and 40%, respectively. Calculate the amount of the fraudulent revenue reported for each of the three years, as well as the total amount of the fraudulent revenue for the entire period.

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The detailed answer for the above question is provided below To calculate the fraudulent revenue reported for each of the three years we first need to ... View the full answer