Multiple Choice
A company failed to record unrealized gains of $20 million on its debt investments classified as trading securities. Its tax rate is 30%. As a result of this error, total shareholders' equity would be:
A) Understated by $14 million.
B) Understated by $7 million.
C) Understated by $20 million.
D) Unaffected.
Correct Answer:
Verified
Correct Answer:
Verified
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