Cagey Trading Inc. counted $2,000 of inventory twice during its December 31, 2010 physical inventory count. Its December 31, 2011 inventory amount is correct. As a result of this error,
A) 2010 ending inventory is overstated by $2,000.
B) 2010 income is understated by $2,000.
C) 2011 income is overstated by $2,000.
D) 2011 cost of goods sold is understated by $2,000.
Correct Answer:
Verified
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