For a recent year, the balance sheet for The Campbell Soup Company includes accrued expenses of $676 million. The income before taxes for Campbell for the year was $272 million.

a. Assume the adjusting entry for $676 million of accrued expenses was not recorded at the end of the year. By how much would income before taxes have been misstated?

b. What is the percentage of the misstatement in (a) to the reported income of $272 million? Round to one decimal place.