Moonland Company's income statement contained the following errors: Ending inventory, December 31, 2021, understated by $9,000 Depreciation expense for 2021 overstated by $1,700 What is the effect of the errors on 2021 net income before taxes

Understatement of net income before taxes by $9,000 and $1,700 by both errors.

Explanation:

For inventory account, its movement is denoted as;

Opening balance + purchases/production - cost of goods sold = closing inventory

The value of $9,000 means an understatement of closing inventory whereas same value overstates the cost of goods sold. The final outcome is that same value of $9,000 would reduce or understate net income balance.

Also, where an expense is overstated, such would understate the net income balance. With regards to the overstatement of depreciation by $1,700, the net income will be affected(understated) by same amount.

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.