Mathematics, 25.03.2020 20:37 savannahvargas512
Foy Corp. failed to accrue warranty costs of $50,000 in its December 31, 2003 financial statements. In addition, a change from straight-line to accelerated-depreciation made at the beginning of 2004 resulted in a $30,000 decrease in income for the year. Both the $50,000 and the $30,000 are net of related income taxes.
What amount should Foy report as Prior period adjustments in 2004?
a) $0
b) $30,000
c) $50,000
d) $80,000
Answers: 3
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Foy Corp. failed to accrue warranty costs of $50,000 in its December 31, 2003 financial statements....
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