C is corrent. The requirement is to determine the impact of the error. The result of this error would have been an understatement of depreciation by $40,000 and understatement of accumulated depreciation by $40,000 and an overstatement of net income by $24,000 [$40,000 x (1 - .4)].
A is incorrect. The requirement is to determine the impact of the error. The result of this error would have been an understatement of depreciation by $40,000 and understatement of accumulated depreciation by $40,000 and an overstatement of net income by $24,000 [$40,000 x (1 - .4)].
A is incorrect. The requirement is to determine the impact of the error. The result of this error would have been an understatement of depreciation by $40,000 and understatement of accumulated depreciation by $40,000 and an overstatement of net income by $24,000 [$40,000 x (1 - .4)].
D is incorrect. The requirement is to determine the impact of the error. The result of this error would have been an understatement of depreciation by $40,000 and understatement of accumulated depreciation by $40,000 and an overstatement of net income by $24,000 [$40,000 x (1 - .4)].
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