Income before taxes-overstated or understated


Problem:

Ending inventory 2005 = 5,000 overstated
insurance expense 2005 = 2,400 understated

Assuming that the errors were no corrected, by what amount will 2005 income before taxes be overstated or understated?

Please explain.

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Accounting Basics: Income before taxes-overstated or understated
Reference No:- TGS01928927

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