EX 3-21 Effects of errors on financial statements

For a recent period, the balance sheet for Costco Wholesale Corporation reported accrued
expenses of $1,720 million. For the same period, Costco reported income before income
taxes of $1,714 million. Assume that the adjusting entry for $1,720 million of accrued
expenses was not recorded at the end of the current period. What would have been the
income (loss) before income taxes?

Answer:
Income: $3,434 million ($1,714 + $1,720)