Wilmington Company reported pretax income of $25,000 during 2015 and $30,000 during 2016. Later it was discovered that the ending inventory for 2015 was understated by $2,000 (and not corrected in 2015). What is the correct pretax income for each year?

Question

Quizplus · Accepted Answer

The Answer of Wilmington Company reported pretax income of $25,000 during 2015 and $30,000 during 2016. Later it was discovered that the ending inventory for 2015 was understated by $2,000 (and not corrected in 2015). What is the correct pretax income for each year?

Wilmington Company Reported Pretax Income of $25,000 During 2015 and $30,000