During the Audit of Montane Company's 2010 Financial Statements,the Auditors

Multiple Choice

During the audit of Montane Company's 2010 financial statements,the auditors discovered that the 2010 ending inventory had been overstated by $8,000 and that the 2010 beginning inventory was overstated by $5,000.Before the effect of these errors,2010 pretax income had been computed as $100,000.What should be reported as the correct 2010 pretax income before taxes?

A) $113,000
B) $87,000
C) $105,000
D) $97,000