Speedy Corporation reported net income of $465,000 for the current year.After the financial statements had been prepared,it was discovered that ending inventory had been understated by $45,000.If the tax rate is 40%,after the error has been corrected,net income,after tax,will:
A) increase by $27,000.
B) decrease by $27,000.
C) increase by $45,000.
D) decrease by $45,000.
Correct Answer:
Verified
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