Sideline Company reported net income for 2021 of $70,000 and in 2022 of $84,000 (both after income taxes at a 30% rate). It was discovered in 2022 that the ending inventory for 2021 was understated by $2,000 (before any income tax effect). Required: Calculate the correct net income (after income tax of 30%) for 2021 and 2022. Net income after tax 2021 $ 71,400 2022 $82,600
Sideline Company reported net income for 2021 of $70,000 and in 2022 of $84,000 (both after income taxes at a 30% rate). It was discovered in 2022 that the ending inventory for 2021 was understated by $2,000 (before any income tax effect). Required: Calculate the correct net income (after income tax of 30%) for 2021 and 2022. Net income after tax 2021 $ 71,400 2022 $82,600
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter18: Accounting For Income Taxes
Section: Chapter Questions
Problem 18E
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