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Question 17

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Use the following information for questions.
Armstrong Inc.is a calendar-year corporation.Its financial statements for the years ended 12\31\10 and 12\31\11 contained the following errors:
Use the following information for questions. Armstrong Inc.is a calendar-year corporation.Its financial statements for the years ended 12\31\10 and 12\31\11 contained the following errors: -Assume that no correcting entries were made at 12\31\10, or 12\31\11.Ignoring income taxes, by how much will retained earnings at 12\31\11 be overstated or understated? A) $24,000 overstatement B) $21,000 overstatement C) $30,000 understatement D) $9,000 understatement
-Assume that no correcting entries were made at 12\31\10, or 12\31\11.Ignoring income taxes, by how much will retained earnings at 12\31\11 be overstated or understated?


A) $24,000 overstatement
B) $21,000 overstatement
C) $30,000 understatement
D) $9,000 understatement

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