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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:

Select one:

a. Correct

b. $75,000 overstated

c. $15,000 overstated

d. $135,000 overstated

e. $75,000 understated

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