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At the start of 20X5, Souza Corp.'s beginning inventory was overstated by $10,000. In addition, during 20X5, Souza understated its net purchases by $4,000. The
At the start of 20X5, Souza Corp.'s beginning inventory was overstated by $10,000. In addition, during 20X5, Souza understated its net purchases by $4,000. The cost of ending inventory at 20X5 is correctly stated. Before reflecting any adjustments for the above error items, Souza's net income on its 20X5 income statement was $800,000. Question: What should Souza report as its corrected net income for 20X5?
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Intermediate Accounting
Authors: Donald Kieso, Jerry Weygandt, Terry Warfield, Nicola Young,
10th Canadian Edition, Volume 1
978-1118735329, 9781118726327, 1118735323, 1118726324, 978-0176509736
