Business, 22.06.2019 14:50
Pear co.âs income statement for the year ended december 31, as prepared by pearâs controller, reported income before taxes of $125,000. the auditor questioned the following amounts that had been included in income before taxes: equity in earnings of cinn co. $ 40,000 dividends received from cinn 8,000 adjustments to profits of prior years for arithmetical errors in depreciation (35,000) pear owns 40% of cinnâs common stock, and no acquisition differentials are relevant. pearâs december 31 income statement should report income before taxes of
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