Wilder Company reported pretax profit amounts of: 20X2, $11,000; and 20X3, $15,000. Later it was discovered that the ending inventory for 20X2 was understated by $2,000 (and not corrected in 20X3). The correct pretax profit for each year was which of the following?
$\begin{array} {lrr}
&& \underline { 20 X 2 } && \underline { 20 X 3 } \\end{array}$
a) $\begin{array} {lrr } & \$ 9,000 & \$ 13,000 \\end{array}$
b) $\begin{array} { lrr } & \$ 13,000 & \$ 13,000 \\end{array}$
c)$\begin{array} { lrr} & \$ 13,000 & \$ 17,000 \\end{array}$
d) $\begin{array} { lrr} & \$ 9,000 & \$ 17,000 \
\end{array}$

Question

Wilder Company reported pretax profit amounts of: 20X2, $11,000; and 20X3, $15,000. Later it was discovered that the ending inventory for 20X2 was understated by $2,000 (and not corrected in 20X3). The correct pretax profit for each year was which of the following?
 $\begin{array} {lrr} 
&& \underline { 20 X 2 } && \underline { 20 X 3 } \\end{array}$
 a) $\begin{array} {lrr } & \$ 9,000 & \$ 13,000 \\end{array}$
 b) $\begin{array} { lrr } & \$ 13,000 & \$ 13,000 \\end{array}$
 c)$\begin{array} { lrr} & \$ 13,000 & \$ 17,000 \\end{array}$
 d) $\begin{array} { lrr} & \$ 9,000 & \$ 17,000 \
\end{array}$

Quizplus · Accepted Answer

The Answer of Wilder Company reported pretax profit amounts of: 20X2, $11,000; and 20X3, $15,000. Later it was discovered that the ending inventory for 20X2 was understated by $2,000 (and not corrected in 20X3). The correct pretax profit for each year was which of the following?
 $\begin{array} {lrr} 
&& \underline { 20 X 2 } && \underline { 20 X 3 } \\end{array}$
 a) $\begin{array} {lrr } & \$ 9,000 & \$ 13,000 \\end{array}$
 b) $\begin{array} { lrr } & \$ 13,000 & \$ 13,000 \\end{array}$
 c)$\begin{array} { lrr} & \$ 13,000 & \$ 17,000 \\end{array}$
 d) $\begin{array} { lrr} & \$ 9,000 & \$ 17,000 \
\end{array}$

Wilder Company Reported Pretax Profit Amounts Of: 20X2, $11,000; and 20X3