Multiple Choice
Moonland Company's income statement contained the following errors: Ending inventory, December 31, 2013, understated by $6,000
Depreciation expense for 2013 overstated by $1,000
What is the effect of the errors on 2013 net income before taxes?
A) Overstated by $5,000.
B) Understated by $5,000.
C) Understated by $7,000.
D) Overstated by $7,000.
Correct Answer:
Verified
Correct Answer:
Verified
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