Question
Newcastle Company reported net income of $325,000 at December 31, 2020. Newcastle later discovered that its ending inventories at December 31, 2019 and 2020, were
Newcastle Company reported net income of $325,000 at December 31, 2020. Newcastle later discovered that its ending inventories at December 31, 2019 and 2020, were understated by $77,500 and $112,000 respectively.
Required: Determine the correct amount for net income as of December 31, 2020.
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Intermediate Accounting Volume 1
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy
12th Canadian edition
119-49633-5, 1119496497, 1119496330, 978-1119496496
