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Question 3 (16 marks) Part A. (6 marks) ABC Publishers Inc. draft 2019 financial statements showed a tentative net income of $550,000. After the draft
Question 3 (16 marks)
Part A. (6 marks)
ABC Publishers Inc. draft 2019 financial statements showed a tentative net income of $550,000. After the draft statements were prepared, but prior to their approval and release, the external auditors discovered two errors as listed in the table below.
Required:
- What effect will correction of these errors have on the net income for the year ended 31 December 2019? Indicate the amount and sign (+ or -) of the adjustment you need to make to net income for items a and b below. (4 marks)
Errors | Effect of correcting errors on 2019 net income |
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2. What will be the revised 2019 net income? (2 marks) ____________________
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