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Question - At the end of the current year, a company overstated prepaid insurance by $70,000 and understated supplies expense by $119,000. Its effective tax rate is 25%. As a result of this error, determine the net income?
a. Overstated by $36,750.
b. Understated by $141,750.
c. Overstated by $141,750.
d. Understated by $36,750.
Abe Technologies provides maintenance service for computers and office equipment for companies throughout the Northeast.
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