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Use the Following Information for Questions

Question 42

Multiple Choice

Use the following information for questions.
Ignore taxes.
Peach Inc.'s financial statements for the years 2017 and 2018 contained errors as follows: Use the following information for questions. Ignore taxes. Peach Inc.'s financial statements for the years 2017 and 2018 contained errors as follows: -Assuming that the errors made in 2017 were corrected, but that the errors made in 2018 were not detected, by what amount will 2018 income before taxes be overstated or understated? A) $5,000 overstated B) $8,500 overstated C) $1,500 understated D) $1,500 overstated
-Assuming that the errors made in 2017 were corrected, but that the errors made in 2018 were not detected, by what amount will 2018 income before taxes be overstated or understated?


A) $5,000 overstated
B) $8,500 overstated
C) $1,500 understated
D) $1,500 overstated

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