During 2024, Passage Company discovered that the ending inventories reported on its financial statements were incorrect by the following amounts 2022 $60,000 understated 2023 $75,000 overstated Prior to any adjustments for these errors, 2023 Net Income would be a Correct b $75,000 overstated c $15,000 overstated d $135,000 overstated e $75,000 understated

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During 2024, Passage Company discovered that the ending inventories reported on its financial statements were incorrect by the following amounts: 2022 $60,000 understated 2023 $75,000

During 2024, Passage Company discovered that the ending inventories reported on its financial statements were incorrect by the following amounts:

2022	$60,000 understated
2023	$75,000 overstated

Prior to any adjustments for these errors, 2023 Net Income would be:

a.Correct

b.$75,000 overstated

c.$15,000 overstated

d.$135,000 overstated

e.$75,000 understated

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