Net income was of solve this question general Accounting A telecommunications company failed to make ayear-end accrual of $300,000 for penalties due to aregulatory violation. Its tax rate is 35%. As a result ofthis error, net income was:a) Unaffected.b) Overstated by $300,000.c) Overstated by $195,000.d) Overstated by $105,000.

Step 1: Define Accrual Accounting and Net Income ImpactAccrual accounting requires that expenses be…

Answered: A telecommunications company failed to…

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter14: Choice Of Business Entity—operations And Distributions

Section: Chapter Questions

Problem 38P

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A broadcasting company failed to make a year-end accrual of $420,000 for fines due to a violation of FCC rules. Its tax rate is 25%. As a result of this error, net income was:
If you give wrong answer I will give you unhelpful rate
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