Question: TB MC Qu . 2 0 - 9 9 ( Static ) At the end of the current year, a company... At the end of

TB MC Qu.20-99(Static) At the end of the current year, a company...
At the end of the current year, a company overstated prepaid insurance by $80,000 and understated supplies expense by $100,000. Its effective tax rate is 25%. As a result of this error, net income is:
Multiple Choice
Overstated by $135,000.
Overstated by $15,000.
Understated by $135,000.
Understated by $15,000.

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