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ABC Company reported net income for the year of $200,000. As well, ABC reported total assets of $2,000,000, total liabilities of $1,500,000 and total stockholders'
ABC Company reported net income for the year of $200,000. As well, ABC reported total assets of $2,000,000, total liabilities of $1,500,000 and total stockholders' equity of $500,000 as of the end of the year. After the financial statements were created, an examination of the accounting records found that ABC Company improperly recorded $20,000 of capitalizable costs (i.e., costs that should have been recorded as part of long-term fixed assets) as repair expenses. When the financial statements are corrected for this error, which of the following will be true? Check all that will be true. Select one or more: O Total assets will be more than $2,000,000 o Net income will remain at $200,000 O Net income will be more than $200,000 0 Total assets will be less than $2,000,000 O Net income will be less than $200,000 0 Total assets will remain at $2,000,000
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