8) Beta Inc. is a calendar-year corporation. Its financial statements for the years ended 12/31/20 and 12/31/21 contained the following errors: Interest Expense Salary Expense 2020 $40,000 understated 15,000 overstated 2021 $60,000 understated 40,000 overstated Assume that the 2021 errors were not corrected and that no errors occurred in 2019. By what amount will 2021 income before income taxes be overstated or understated?
