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Please answer the question ASAP!! Barbara Company's year-end December 31, 2019, financial statements contained the following errors: Ending inventory on December 31,2019 , was overstated
Please answer the question ASAP!!
Barbara Company's year-end December 31, 2019, financial statements contained the following errors: Ending inventory on December 31,2019 , was overstated by $75,000. Depreciation expense was understated by $7,000. A two-year insurance policy for 2019 and 2020 in the amount of $14,000 was entirely expensed in 2019. Investments in common stock of other companies were sold in 2019 at a gain of $10,000, but the sale was not recorded until 2020. Refer to Exhibit 22-4. What is the effect of the above errors on 2019 net income? Net income is overstated by $58,000. Net income is understated by $65,000. Net income is overstated by $65,000. Net income is oversiated by $92,000 Step by Step Solution
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