1) At January 1, 2009, beginning inventory was understated by $26,000 and ending inventory as at December 31,2009 was overstated by $52,000. Accordingly "Cost of Sales" for the year ending December 31,2009 was: a) Understated by $26,000 b) Overstated by $26,000 c) Understated by $78,000 d) Overstated by $78,000 3) An entity has computed its gross profit before tax at $150,000 for the year ending 31/12/2009. However it has omitted to book the following during 2009: - Provision for income tax: 10% of its gross profit - Purchase of inventories on 30/12/2009 for $25,000 BT=15,000 The adjusted net profit would be: a) $150,000 b) $175,000 c) $112,500 d) $157,500