Question
ABC Inc. reported a pre-tax income of $ 768000 for 2020. However, the company and its auditors subsequently discovered the following errors in thevaluation of
ABC Inc. reported a pre-tax income of $ 768000 for 2020. However, the company and its auditors subsequently discovered the following errors in thevaluation of inventory.
2020 Opening inventory Amount Reported 54000
Correct Amount 44000
2020 Closing inventory Amount Reported 56000
Correct Amount 50000
Calculate the proper amount of pre-tax income for 2020.
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Financial Accounting The Impact on Decision Makers
Authors: Gary A. Porter, Curtis L. Norton
9th edition
130565417X, 1305654174, 9781285972572 , 978-1285182964
