77) Given the following data: Ending inventory at cost $24,000 Ending inventory at current net realizable value 23,600 Cost of goods sold (before consideration of the lower-of-cost-and-net-realizable-value rule) 37,000 Which of the following depicts the proper account balance after the application of the lower-of-cost-and-net realizable value rule?

A) Cost of goods sold will be $37,400. B) Cost of goods sold will be $36,400. C) Cost of goods sold will be $37,000. D) Ending inventory will be $24,000.

78) Inventory at the end of the current year is overstated by $20,000. What effect will this error have on the following year's net income?

A) Net income will be overstated $20,000. B) Net income will be understated $20,000. C) Net income will be correctly stated. D) Net income will be understated $40,000.

79) Two separate errors affected Satellite City in 2010. The beginning inventory was understated by $28,000 and the ending inventory was understated by $43,000. Net income in 2010 will be:

A) understated by $15,000

B) understated by $71,000

C) understated by $43,000

D) overstated by $15,000

80) Two separate errors affected Satellite City in 2010. The beginning inventory was understated by $28,000 and the ending inventory was understated by $43,000. Net income in 2011 will be:

A) overstated by $15,000

B) overstated by $43,000

C) understated by $43,000

D) understated by $71,000

81) Two separate errors affected Rollings Company in 2010. The beginning inventory was overstated by $12,000 and the ending inventory was overstated by $18,000. Net income in 2010 will be:

A) overstated by $30,000

B) overstated by $12,000

C) overstated by $6,000

D) understated by $6,000

82) Two separate errors affected Rollings Company in 2010. The beginning inventory was overstated by $12,000 and the ending inventory was overstated by $18,000. Net income in 2011 will be:

A) overstated by $30,000

B) understated by $18,000

C) overstated by $18,000

D) overstated by $6,000