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Use the Following Information for Questions 55 and 56

Question 4

Multiple Choice

Use the following information for questions 55 and 56.
Armstrong Inc. is a calendar-year corporation. Its financial statements for the years ended 12/31/14 and 12/31/15 contained the following errors: Use the following information for questions 55 and 56. Armstrong Inc. is a calendar-year corporation. Its financial statements for the years ended 12/31/14 and 12/31/15 contained the following errors: -Assume that the 2014 errors were not corrected and that no errors occurred in 2013. By what amount will 2014 income before income taxes be overstated or understated? A) $35,000 overstatement B) $15,000 overstatement C) $35,000 understatement D) $15,000 understatement
-Assume that the 2014 errors were not corrected and that no errors occurred in 2013. By what amount will 2014 income before income taxes be overstated or understated?


A) $35,000 overstatement
B) $15,000 overstatement
C) $35,000 understatement
D) $15,000 understatement

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