You have been hired as the new controller for the ralston company. shortly after joining the company in 2018, you discover the following errors related to the 2016 and 2017 financial statements: inventory at 12/31/16 was understated by $7,600. inventory at 12/31/17 was overstated by $10,600. on 12/31/17, inventory was purchased for $4,600. the company did not record the purchase until the inventory was paid for early in 2018. at that time, the purchase was recorded by a debit to purchases and a credit to cash. the company uses a periodic inventory system. required: 1. assuming that the errors were discovered after the 2017 financial statements were issued, analyze the effect of the errors on 2017 and 2016 cost of goods sold, net income, and retained earnings. (ignore income taxes.) 2. prepare a journal entry to correct the errors.

1. is the act of declaring a drivers license void and terminated when it is determined that the license was issued through error or fraud.

Martinez company has the following two temporary differences between its income tax expense and income taxes payable. 2017 2018 2019 pretax financial income $873,000 $866,000 $947,000 (2017' 2018, 2019) excess depreciation expense on tax return (29,400 ) (39,000 ) (9,600 ) (2017' 2018, 2019) excess warranty expense in financial income 20,000 9,900 8,300 (2017' 2018, 2019) taxable income $863,600 $836,900 $945,700(2017' 2018, 2019) the income tax rate for all years is 40%. instructions: a. prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2017, 2018, and 2019. b. assuming there were no temporary differences prior to 2016, indicate how deferred taxes will be reported on the 2016 balance sheet. button's warranty is for 12 months. c. prepare the income tax expense section of the income statement for 2017, beginning with the line, "pretax financial income."

Which of these is an example of innovation?