The hotel company "NI" showed profits of 10,000 (before tax) for the period 2020...
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The hotel company "NI" showed profits of 10,000 (before tax) for the period 2020 and 12,000 for 2021. In 2021 the internal auditors discovered that on 01/01/2020, the company recorded an insurance premium expense of 3,000 (with corresponding reduction of the cash and cash equiivalent account), an amount which concerned the prepayment of insurance premiums for a period of 3 years. How much should the profits of the period 2020 and 2021 be?
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