The Correct 2016 Net Income for Magness Company, After Error

Multiple Choice

The correct 2016 net income for Magness Company, after error corrections, was $56,000. Two errors were found after net income was first reported. The January 1, 2016 inventory and the December 31, 2016, inventory were overstated by $5,000 and $10,000, respectively. What is the amount of the net income that must have been originally reported?

A) $41,000
B) $66,000
C) $71,000
D) $61,000