1-Company acquired equipment on July 1, 2015 from National Manufacturer at $16000The estimated useful life of 5 years and estimated residual value of $1000 the company realized that it mistakenly recoded depreciation based on the SLM instead of the SYD method. 2- failed to recognized $500 unrealized gain on non-trading securities. 3- company mistakenly reports $1000 gain on reissuing treasury share in the income statement of 2016. A) - Show the dollar amount impact, if any, and the nature of the effect (overstatement or understatement or no effect) of these accounting errors on the following financial statement items(company subject to 40% tax rate). :

1-Company acquired equipment on July 1, 2015 from National Manufacturer at $16000The estimated useful life of 5 years and estimated residual value of $1000 the company realized that it mistakenly recoded depreciation based on the SLM instead of the SYD method. 2- failed to recognized $500 unrealized gain on non-trading securities. 3- company mistakenly reports $1000 gain on reissuing treasury share in the income statement of 2016. A) - Show the dollar amount impact, if any, and the nature of the effect (overstatement or understatement or no effect) of these accounting errors on the following financial statement items(company subject to 40% tax rate). :

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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