Miller Co, discovered that, in the prior year, it failed to report $40,000 of depreciation related to a newly constructed building. The depreciation was computed correctly for tax purposes. Tax rate for the current year was 40%. What was the impact of the error on Millers financial statements for the prior year?


Besides net income, which account would be overstated by $24,000?
 
 
For total Assets?
Overstated or understated?
 
 

By how much?
 
 
Explain your answer?

Answer rating: 100% (QA)

The impact of the error on Millers financial statements for the prior year is as follows Net income ... View the full answer