Sunland lnc. is a calendar-year corporation. Its financial statements for the years ended 12/31/17 and 12/31/18 contained

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Sunland lnc. is a calendar-year corporation. Its financial statements for the years ended 12/31/17 and 12/31/18 contained the following error:

2017 2018

Ending inventory $45000 overstatement $ understatement

Depreciation expense 25000 understatement 38000 overstatement

Assume that the 2017 errors were not corrected and that no errors occurred in 2016. By what amount will 2017 income before income taxes be overstated or understated?

$20000 understatement

$20000 overstatement

$70000 overstatement

$70000 understatement

Related Book For answer-question

Financial Accounting An Integrated Statements Approach

ISBN: 978-0324312119

2nd Edition

Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren

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Posted Date: May 12, 2019 11:32 PM

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Sunland lnc. is a calendar-year corporation. Its financial statements for the years ended 12/31/17 and 12/31/18 contained

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Depreciation expenses 25000 Income is over... View the full answer

Financial Accounting An Integrated Statements Approach

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