A Company Failed to Record Unrealized Gains of $20 Million

question 17

Multiple Choice

A company failed to record unrealized gains of $20 million on its debt investments classified as trading securities. Its tax rate is 30%. As a result of this error, total shareholders' equity would be:

• A) Understated by $14 million.
• B) Understated by $7 million.
• C) Understated by $20 million.
• D) Unaffected.

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Definitions:

Mature Music

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A cognitive process in which an individual blames external forces or situations for their failures or negative outcomes, as a protective mechanism against feeling personally responsible.

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The psychological phenomenon where an individual believes they are being noticed and observed more than they actually are.

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