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Overstated & Understated account

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

assuming that the ...

Purchase this Solution
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