Use the following information for questions

-Assuming that none of the errors was detected or corrected, by what amount will 2011 income before taxes be overstated or understated?
A)$14,300 understated
B)$11,900 understated
C)$6,700 understated
D)$6,700 overstated

Question

Use the following information for questions 
 
-Assuming that none of the errors was detected or corrected, by what amount will 2011 income before taxes be overstated or understated?
A)$14,300 understated 
B)$11,900 understated 
C)$6,700 understated 
D)$6,700 overstated

Quizplus · Accepted Answer

The error is an understatement of depreciation expense, which will result in an overstatement of income before taxes. The amount of the overstatement is $14,300.

Use the Following Information for Questions