Question: i will thumbs up for fast response and correct answer TMC Inc. employs a periodic inventory system. At the end of 2018, it missed counting

i will thumbs up for fast response and correct answer

TMC Inc. employs a periodic inventory system. At the end of 2018, it missed counting some inventory items, resulting in an inventory understatement by $600,000. Assume that TMC has a 25% income tax rate and that this was the only error it made. What is the effect of the error on TMC's 2019 income statement? Multiple Choice Net income is understated by $450,000 Cost of goods sold is understated by $450,000 None of these answer choices are correct There are no errors in the 2021 income statement

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Blue Co. has a patent on a communication process. The company has amortized the patent on a straight-line basis since 2012, when it was acquired at a cost of $52 million at the beginning of that...

1. 2. 3. In 2018, Internal auditors discovered that Fay, Inc., had debited an expense account for the $3,900,000 cost of a machine purchased on January 1, 2015. The machine's useful life was expected...

10. Lundholm Company purchased a machine for $102.100 on January 1, 2016. Lundholm depreciates machines of this type by the straight-line method over a 10 year period using no salvage value. Due to a...

MC Qu. 65 LO 20-06 Berkshire Inc. uses a periodic inventory system. At the end of... Berkshire Inc. uses a periodic inventory system. At the end of 2012, it missed counting some inventory items,...

Berkshire Inc. uses a periodic inventory system. At the end of 2020, it missed counting some inventory items, resulting in an inventory understatement by $550,000. Assume that Berkshire has a 25%...

#21 Berkshire Inc. uses a periodic inventory system. At the end of 2020, it missed counting some inventory items, resulting in an inventory understatement by $530,000. Assume that Berkshire has a 25%...

Berkshire Inc. uses a periodic inventory system. At the end of 2020 , it missed counting some inventory items, resulting in an inventory understatement by $620,000. Assume that Berkshire has a 30%...

Berkshire Inc. uses a periodic inventory system. At the end of 2020, it missed counting some inventory items, resulting in an inventory understatement by $650,000. Assume that Berkshire has a 20%...

Berkshire Inc. uses a periodic inventory system. At the end of 2017, it missed counting some inventory items, resulting in an inventory understatement by $670,000. Assume that Berkshire has a 35%...

Berkshire Inc. uses a periodic inventory system. At the end of 2017, it missed counting some inventory items, resulting in an inventory understatement by $600,000. Assume that Berkshire has a 30%...

If A = [0, 3], B = [2, 7), with U = R, determine each of the following: (a) A B (b) A U B (c) (d) A B (e) A - B (f) B - A

Explain the concept of mega-environment and outline its major elements.

14. The monthly salaries for December and the year-to-date earnings of the employees of Lincoln Project Company as of November 30 follow. Employee No. December Salary Year-to-Date Earnings Through...

last two options for the multiple choice are : performance management development A construction equipment manufacturer, Roswell Corporation, is focusing on becoming a leader in sustainability in...

2. Workplace comedies and dramas typically play off situations that really arise in organizational settings. Watch a few episodes of such workplace sitcoms as The Office, 30 Rock, and Parks and...

2 What communication benefits does telecommuting offer employees? What does it offer the organization?

1. Which statement best describes you after you leave work for the day? A. I dont think about work again until I arrive the next morning. B. I usually check my work e-mail before bed. C. I check my...