At the end of the current year, a company overstated prepaid insurance by $72,000 and understated supplies

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At the end of the current year, a company overstated prepaid insurance by $72,000 and understated supplies expense by $110,000. Its effective tax rate Is 20% As a result of this error, net Income Is:

Multiple Choice

Understated by $30.400.

Overstated by $30,400.

Understated by $145,600.

Overstated by $145,600.

Related Book For answer-question

Principles Of Managerial Finance

ISBN: 978-0136119463

13th Edition

Authors: Lawrence J. Gitman, Chad J. Zutter

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Posted Date: Jan 09, 2023 11:54 PM

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At the end of the current year, a company overstated prepaid insurance by $72,000 and understated supplies

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Understated prepaid insurance 72000 x 20 14400 Un... View the full answer

Principles Of Managerial Finance

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