Speedy Corporation reported net income of $385,000 for the current year. After the financial statements had been prepared, it was discovered that ending inventory had been understated by $35,000
If the tax rate is 30%, after the error has been corrected, net income, after tax, will:
A) increase by $24,500.
B) decrease by $24,500.
C) increase by $35,000.
D) decrease by $35,000.
A
Explanation: A) $35,000 × 0.70 = $24,500
Business
You might also like to view...
The errors in a particular forecast are as follows: 4, -3, 2, 5, -1. What is the tracking signal of the forecast?
A) 0.4286 B) 2.3333 C) 5 D) 1.4 E) 2.5
Business
All of the following are central to software engineering processes EXCEPT:
A) methodologies. B) sequences. C) techniques. D) tools. E) CASE tools.
Business