21. At the end of the year, overhead applied was $42,000,000. Actual overhead was $40,300,000. Closing over/underapplied overhead into Cost of Goods Sold would cause net income to a. increase by $1,700,000 b. decrease by $1,700,000 c. increase by $3,400,000 d. decrease by $3,400,000

b. decrease by $1,700,000

Explanation:

At the end of the year, overhead applied was $42,000,000.

Actual overhead was $40,300,000.

Closing over/underapplied overhead into Cost of Goods Sold would cause

net income b. decrease by $1,700,000

An increase in the inventory ($42,000,000-$40,300,000)  $1,700,000 would cause the inventory to be overstated by the amount  $1,700,000 hence decreasing the income statement by the same amount.

c

explanation:

c because the item on a bank statement is also referred to as an account statement. in addition, it provides the beginning balance, ending balance, statement date, transaction date for each transaction, payee, customer name and address, statement period, the account holder's account number, and the bank's customer service number