BVC Began Operations January 1,20x1

question 31

Multiple Choice

BVC began operations January 1,20x1.Financial statements for the year ended December 31,20x1,and 20x2,contained the following errors: In addition,on December 26,20x2,fully depreciated machinery was sold for $21,600 cash,but the sale was not recorded until 20x3. There were no other errors during 20x1 or 20x2,and no corrections have been made for any of the errors.
What is the total pre-tax effect of the errors on 20x2 net income?

• A) $28,400 Overstated
• B) $50,000 Overstated
• C) $53,600 Overstated
• D) $71,600 Overstated

---

Definitions:

Problem Solving

A cognitive process involving the identification and resolution of an issue or obstacle.

Health Assessment

A systematic method for evaluating the health status of an individual, incorporating physical examination, history taking, and diagnostic testing.

Genomics

The branch of molecular biology concerned with the structure, function, evolution, and mapping of genomes.

Genogram

A graphic representation of a family tree that displays detailed data on relationships among individuals, often used to identify patterns of mental and physical illnesses.