General Accounting A broadcasting company failed to make ayear-end accrual of $200,000 for fines due toa violation of FCC rules. Its tax rate is 40%. Asa result of this error, net income was:a) Unaffected.b) Overstated by $200,000.c) Overstated by $120,000.d) Overstated by $80,000.

Step 1: Define AccrualsFailing to prepare and post accruals during the adjusting process can cause…

Answered: A broadcasting company failed to make a…

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter3: Taxes On The Financial Statements

Section: Chapter Questions

Problem 3BCRQ

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A broadcasting company failed to make a year-end accrual of $200,000 for fines due to a violation of FCC rules. Its tax rate is 40%. As a result of this error, net income was: a) Unaffected. b) Overstated by $200,000. c) Overstated by $120,000. d) Overstated by $80,000.