Answer:
(1) decrease for 94,720
(2) decrease for 81,360
(3) decrease for 121,520
(4) decrease for 402,000
Total decrease 699,600
Explanation:
We must calcualte the after-tax amount.
(1) As this is an expense ist provides a tax shield, lowering the expense after-tax:
118,400 x (1 - 0.2) = 94,720
(2) also a loss whch has a tax shield:
101,700 x ( 1 - 0.2 ) = 81,360
(3) an overstated inventory for 151,900 generate a loss for holding assets.
After tax: 151,900 x (1 - 0.2 ) = 121,520
(4) loss at dispossal: 2,010,000
2,010,000 x ( 1 - 0.2 ) )= 402,000
