A company reported the net income of $58,000 for the year ending 2018. However, it was discovered that the opening inventory was overstated by $9,000 and the ending inventory is understated by $11,000. Compute the corrected net income. a. $60,000 b. $78,000 c. $56,000 d. $47,000

A company reported the net income of $58,000 for the year ending 2018. However, it was discovered that the opening inventory was overstated by $9,000 and the ending inventory is understated by $11,000. Compute the corrected net income. a. $60,000 b. $78,000 c. $56,000 d. $47,000

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 15EA: Shetland Company reported net income on the year-end financial statements of $125,000. However,...

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A company reported the net income of $58,000 for the year ending 2018. However, it was
discovered that the opening inventory was overstated by $9,000 and the ending inventory
is understated by $11,000. Compute the corrected net income.
a. $60,000
b. $78,000
c. $56,000
d. $47,000

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