Question: A broadcasting company failed to make a year - end accrual of $ 4 2 0 , 0 0 0 for fines due to a

A broadcasting company failed to make a year-end accrual of $420,000 for fines due to a violation of FCC rules. Its tax rate is 30%. As a result of this error, net income was:
A)
Unaffected.
B)
Overstated by $420,000.
C)
Overstated by $294,000.
D)
Overstated by $126,000.

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