Ending inventory for the year ended December 31, 2017, is understated by $8,000. How will this affect net income for 2017 and 2018?
A) Net income will be understated by $8,000 in 2017 and 2018.
B) Net income will be overstated by $8,000 in 2017 and 2018.
C) Net income will be understated by $8,000 in 2017 and overstated by $8,000 in 2018.
D) Net income will be overstated by $8,000 in 2017 and understated by $8,000 in 2018.
Correct Answer:
Verified
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