Textbook Problem

Effects of errors on financial statements

For a recent period, the balance sheet for Costco Wholesale Corporation reported accrued expenses of $2,890 million. For the same period, Costco reported income before income taxes of $2,767 million. Assume that the adjusting entry for $2,890 million of accrued expenses was not recorded at the end of the current period. What would have been the income (loss) before income taxes?