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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

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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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