Williams-santana, inc. is a manufacturer of high-tech industrial

Williams-Santana, Inc. is a manufacturer of high-tech industrial parts that was started in1997 by two talented engineers with little business training. In 2011, the company was acquired by one of its major customers. As part of an internal audit, the following facts were discovered. The audit occurred during 2011 before any adjusting entries or closing entries were prepared. The income tax rate is 40% for all years.