Bethany Corp

Multiple Choice

Bethany Corp. reported $80,000 of net income for 2016. The following errors were then discovered: · Ending 2016 accrued expense was overstated by $2,000.
· 2016 earned revenue was overstated by $3,000.
· Ending 2016 prepaid expense was overstated by $500.
Ignoring income taxes, what is the correct amount of 2016 net income?

A) $85,500
B) $84,500
C) $78,500
D) $76,500