The Correct 2014 Net Income for Magness Company, After Error

Multiple Choice

The correct 2014 net income for Magness Company, after error corrections, was $56,000. Two errors were found after net income was first reported. The January 1, 2014 inventory and the December 31, 2014, inventory were overstated by $5,000 and $10,000, respectively. The net income that must have been originally reported was

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