prepare a schedule to show the overstatement or understatement in the following items at the end of each year over the four-year life of the equipment 1. total current assets 2. equipment 3. ner income

Requirement 1. Prepare a schedule to show the overstatement or understatement in the following items at the end of each year over the four year We of the equipment 1 Total current assets 2 Equipment, net 3. Not income Select the appropriate effect on cach tom for each year. Leto represent overstated and "U"represent understated (Amounts in multoms. If there is no effect select no effect) Year 1 1. No effect 2 3 Millions of Euros ( No effect No effect 3 U 1.5U 1.50 1.50 Total current assets Equipment, net Net income 2. 4 5U 4.50 3. Transcontinental is a major telecommunication conglomerate Assume that early in 2018, Transcontinental purchased equipment at a cost of 6 million euros (86 milion) Management expects the equipment to remain in service for four years and estimated residual value to be negligible Transcontinental uses the straight-ine depreciation method. Because of an accounting error, Transcontinental expensed the entire cost of the equipment at the time of purchase. Because Transcontinental operates as a partnership, it pays no income taxes Read the requirements Requirement 1. Prepare a schedule to show the overstatement or understatement in the following items at the end of each year over the fouryear life of the equipment 1 Total current assets 2 Equipment, net 3 Net income Select the appropriate effect on each item for each year. Let "Orepresent overstated and "U represent understated (Amounts in millions. If there is no effect, select "no effect") Year 1 No effect 2 3 Millions of Euros (9 No effect No effect 3U 15U 150 150 450 1. Total current assets 2. Equipment, net 3. Net income 6450 Question Requirements 1. Prepare a schedule to show the overstatement or understatement in the following items at the end of each year over the four-year life of the equipment: 1. Total current assets 2. Equipment, net 3. Net income