Dows Company prepared income statements that reflected pretax income of $21,000 for 2013 and $30,000 for 2014. An audit has determined that there were two errors in the inventory amounts as follows: Required:
Determine the correct pretax income amount for each year (show computations; assume the errors were not corrected):

Question

Dows Company prepared income statements that reflected pretax income of $21,000 for 2013 and $30,000 for 2014. An audit has determined that there were two errors in the inventory amounts as follows:  Required:
Determine the correct pretax income amount for each year (show computations; assume the errors were not corrected):

Quizplus · Accepted Answer

The Answer of Dows Company prepared income statements that reflected pretax income of $21,000 for 2013 and $30,000 for 2014. An audit has determined that there were two errors in the inventory amounts as follows:  Required:
Determine the correct pretax income amount for each year (show computations; assume the errors were not corrected):

Dows Company Prepared Income Statements That Reflected Pretax Income of $21,000