ABC Corp's beginning inventory at January 1, Year 1 was understated by $32,000 and the ending inventory was overstated by $57,000. As a result, ABC Corp's cost of goods sold for year 3 was:

Question 5 options:

	understated by 25,000
	overstated by 25,000
	understated by 89,000
	overstated by 89,000