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Phoenix Tech failed to record unrealized losses of $45 million on its available-for- sale security investments. The company's effective tax rate is 40%. How would this error impact comprehensive income? (Round to 2 decimal places) A. Overstated by $45.00 million B. Overstated by $27.00 million C. Understated by $45.00 million D. Unaffected

Phoenix Tech failed to record unrealized losses of $45 million on its available-for- sale security investments. The company's effective tax rate is 40%. How would this error impact comprehensive income? (Round to 2 decimal places) A. Overstated by $45.00 million B. Overstated by $27.00 million C. Understated by $45.00 million D. Unaffected

Intermediate Financial Management (MindTap Course List)
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter6: Accounting For Financial Management
Section: Chapter Questions
Problem 3P
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Phoenix Tech failed to record unrealized losses of $45 million on its available-for- sale security investments. The company's effective tax rate is 40%. How would this error impact comprehensive income? (Round to 2 decimal places) A. Overstated by $45.00 million B. Overstated by $27.00 million C. Understated by $45.00 million D. Unaffected
Transcribed Image Text:Phoenix Tech failed to record unrealized losses of $45 million on its available-for- sale security investments. The company's effective tax rate is 40%. How would this error impact comprehensive income? (Round to 2 decimal places) A. Overstated by $45.00 million B. Overstated by $27.00 million C. Understated by $45.00 million D. Unaffected
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