Essay
Effects of errors on net income
Hummingbird Corp. began operations on January 1, 2019. Financial statements for 2019 and 2020 contained the following errors: 
In addition, on December 26, 2020, fully depreciated equipment was sold for $ 19,000, but the sale was not recorded until 2021. No corrections have been made for any of the errors.
Instructions
Ignoring income tax, show your calculation of the total effect of the errors on 2020 net income.
Correct Answer:
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Note: The error in depreciat...View Answer
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Correct Answer:
Verified
Note: The error in depreciat...View Answer
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