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Business, 25.12.2019 01:31, marineroadrian21
Berkshire inc. uses a periodic inventory system. at the end of 2015, it missed counting some inventory items, resulting in an inventory understatement by $510,000. assume that berkshire has a 30% income tax rate and that this was the only error it made. if undetected, what is the effect of this error on berkshire's 12/31/2015 balance sheet?
assets understated by $510,000 and shareholders' equity understated by $510,000.
assets understated by $357,000 and shareholders' equity understated by $357,000.
assets understated by $510,000, liabilities understated by $153,000 and shareholders' equity understated by $357,000.
none of the above is correct.
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Berkshire inc. uses a periodic inventory system. at the end of 2015, it missed counting some invento...
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