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special issues

Maneesh 02 May 2020 at 11:02 AM

Roy failed to accrue warranty costs of $50,000 in its December 31, 20X4 financial state-ments. In addition, a change made at the beginning of 20X5 from the straight-line method to accelerated depreciation resulted in a cumulative effect of $30,000 on Roy’s retained earnings. Both the $50,000 and the $30,000 are net of related income taxes. What amount should Roy report as a restatement of prior period financial statements in its December 31, 20X5 financial statements?
A)30000
B)80000
C) 0
D)50000

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FACULTY 12 May 2020 at 12:41 PM

Option D
Error correcting in previous years financial statement is included in 
restatement process
 Amount should report as a restatement of prior period financial
statement in its dec 31 50000

Reply this

FACULTY 12 May 2020 at 12:42 PM

Option D
Error correcting in previous years financial statement is included in 
restatement process
 Amount should report as a restatement of prior period financial
statement in its dec 31 50000

Reply this



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