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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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    https://brainmass.com/business/accounting/overstated-understated-account-273266

    Solution Preview

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

    assuming that the ...

    Solution Summary

    Response helps in finding the overstated and understated account.

    $2.19

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