BONOS 17. Avila Corp. reported 2020 net income of S20,000. However, the ending inventory in 2019 had been understated by $2,000 and 2020's ending inventory had been overstated by $3,000. Avila's correct net income for 2020 was a. $21.000 b. $15,000 c. $19,000 d. $25,000 18. The accountant for the Fred Company did not record a purchase of merchandise on credit or include the items in the ending inventory. The effect of these omissions on assets, liabilities, and retained earnings would be assume a periodic inventory system): Assets Liabilities Retained Earnings a. Understate Understate Understate b. Understate Understate No effect c. No effect Understate No effect d. Understate No effect Understate 19. Which one of the following inventories may not be valued for balance sheet purposes at the inventory's selling price less distribution costs even if it is above the cost of the inventory? a grain for an agricultural compnay b. crude oil for an oil company c. gold for a mining corporation d. laptops for a computer manaufacturer