During the audit of Virginia Company's 20B financial statements, the auditors discovered that the 20A ending inventory had been overstated by $10,000 and that the 20B ending inventory had been overstated by $8,000. Before the effect of these errors, 20B pretax profit had been computed as $100,000. What should be reported as the correct 20B profit before taxes?

Question

Quizplus · Accepted Answer

The Answer of During the audit of Virginia Company's 20B financial statements, the auditors discovered that the 20A ending inventory had been overstated by $10,000 and that the 20B ending inventory had been overstated by $8,000. Before the effect of these errors, 20B pretax profit had been computed as $100,000. What should be reported as the correct 20B profit before taxes?

During the Audit of Virginia Company's 20B Financial Statements, the Auditors