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Berkshire Inc. uses a periodic inventory system. At the end of 2017, it missed counting...

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Accounting

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Berkshire Inc. uses a periodic inventory system. At the end of 2017, it missed counting some inventory items, resulting in an inventory understatement by $600,000. Assume that Berkshire has a 30% income tax rate and that this was the only error it made. If undetected, what is the effect of this error on Berkshire's December 31, 2017 balance sheet? Multiple Choice D Assets understated by 5600,000 and shareholders' equity understated by $600,000 Assets understated by $420,000 and shareholders' equity understated by $420,000 Assets understated by 5600,000, liabilities understated by $180,000, and shareholders' equity understated by $420,000 None of these answer choices are correct

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