Multiple Choice
Michael Manufacturers fraudulently overstated its December 31, 2016 and December 31, 2017 inventory by $3,000 and $6,000, respectively. As a result of these overstatements,
A) 2016 income is overstated by $3,000 and 2017 income is overstated by $3,000.
B) 2016 income is overstated by $3,000 and 2017 income is overstated by $6,000.
C) 2016 income is overstated by $3,000 and 2017 income is accurate.
D) 2016 and 2017 incomes are not affected.
Correct Answer:
Verified
Correct Answer:
Verified
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