Solution-By what amount will income before income taxes be

By what amount will income before income taxes be overstated

Reference no: EM133121533

Question - Armstrong Inc. is a calendar-year corporation. Its financial statements for the years ended 12/31/21 and 12/31/22 contained the following errors:

	2021	2022
Ending inventory	P15,000 overstatement	P24,000 understatement
Depreciation expense	P6,000 understatement	P12,000 overstatement

Assume that the 2022 errors were not corrected and that no errors occurred in 2021. By what amount will 2022 income before income taxes be overstated?

Assume that no correcting entries were made at 12/31/21, or 12/31/22. Ignoring income taxes, by how much will retained earnings at 12/31/22 be understated?

Reference no: EM133121533

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By what amount will income before income taxes be overstated

Reference no: EM133121533

Reference no: EM133121533

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