Use the Following Information for Questions 55 and 56

question 72

Multiple Choice

Use the following information for questions 55 and 56.
Armstrong Inc. is a calendar-year corporation. Its financial statements for the years ended 12/31/14 and 12/31/15 contained the following errors:
-Assume that no correcting entries were made at 12/31/14, or 12/31/15. Ignoring income taxes, by how much will retained earnings at 12/31/15 be overstated or understated?

• A) $40,000 overstatement
• B) $35,000 overstatement
• C) $50,000 understatement
• D) $15,000 understatement

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Definitions:

Anti-Imperialists

This term describes individuals and groups who opposed imperialism, arguing that it violated the fundamental principles of democracy and was morally wrong.

Filipino Nationalists

Refers to individuals from the Philippines who advocated for national independence from Spanish and later American colonial rule, especially active during the late 19th and early 20th centuries.

Open Door Note

A series of policy statements issued by the United States in the late 19th and early 20th centuries advocating for equal privileges among countries trading with China.

Boxer Rebellion

An uprising in China (1899-1901) by the "Boxers" aiming to rid the country of foreign influence and Christian missions.