Louise Company Reported the Following Income Statement Information for Year

Multiple Choice

Louise Company reported the following income statement information for Year 1 and Year 2: The beginning inventory balance for Year 1 is correct. The ending inventory balance for Year 2 is also correct. However, the ending inventory figure for Year 1 was overstated by $20,000. Given this information, the correct gross profit figures for Year 1 and Year 2 would be:

A) $129,000 for Year 1 and $256,000 for Year 2.
B) $281,000 for Year 1 and $274,000 for Year 2.
C) $129,000 for Year 1 and $276,000 for Year 2.
D) $169,000 for Year 1 and $236,000 for Year 2.
E) $169,000 for Year 1 and $276,000 for Year 2.