Farr Company reports net income of $90,000 in 2006. However, ending inventory was understated $5,000. What is

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Farr Company reports net income of $90,000 in 2006. However, ending inventory was understated $5,000. What is the correct net income for 2006? What effect, if any, will this error have on total assets as reported in the balance sheet at December 31, 2006?

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