Multiple Choice
A company overstated its liability for warranties by $200,000. Its tax rate is 30%. As a result of this error, income tax expense is:
A) Unaffected.
B) Overstated by $60,000.
C) Understated by $60,000.
D) Understated by $140,000.
Correct Answer:
Verified
Correct Answer:
Verified
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