Wilmington Company reported pretax income of $25,000 during 2010 and $30,000 during 2011.Later it was discovered that the ending inventory for 2010 was understated by $2,000 (and not corrected in 2011).What is the correct pretax income for each year? $$\begin{array} { l c c }
& \underline { 2010 } & \underline { 2011 } \
\text { A. } & \$ 23,000 & \$ 32,000 \
\text { B. } & \$ 27,000 & \$ 32,000 \
\text { C. } & \$ 27,000 & \$ 28,000 \
\text { D. } & \$ 23,000 & \$ 28,000
\end{array}$$

Question

Wilmington Company reported pretax income of $25,000 during 2010 and $30,000 during 2011.Later it was discovered that the ending inventory for 2010 was understated by $2,000 (and not corrected in 2011).What is the correct pretax income for each year? $$\begin{array} { l c c } 
& \underline { 2010 } & \underline { 2011 } \
\text { A. } & \$ 23,000 & \$ 32,000 \
\text { B. } & \$ 27,000 & \$ 32,000 \
\text { C. } & \$ 27,000 & \$ 28,000 \
\text { D. } & \$ 23,000 & \$ 28,000
\end{array}$$

Quizplus · Accepted Answer

The Answer of Wilmington Company reported pretax income of $25,000 during 2010 and $30,000 during 2011.Later it was discovered that the ending inventory for 2010 was understated by $2,000 (and not corrected in 2011).What is the correct pretax income for each year? $$\begin{array} { l c c } 
& \underline { 2010 } & \underline { 2011 } \
\text { A. } & \$ 23,000 & \$ 32,000 \
\text { B. } & \$ 27,000 & \$ 32,000 \
\text { C. } & \$ 27,000 & \$ 28,000 \
\text { D. } & \$ 23,000 & \$ 28,000
\end{array}$$

Wilmington Company Reported Pretax Income of $25,000 During 2010 and $30,000