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Speedy Corporation reported net income of $465,000 for the current year. After the financial statements had been prepared, it was discovered that ending inventory had

Speedy Corporation reported net income of $465,000 for the current year. After the financial statements had been prepared, it was discovered that ending inventory had been understated by $45,000. If the tax rate is 40%, after the error has been corrected, net income, after tax, will:

Question 35 options:

A)

increase by $45,000.

B)

decrease by $45,000.

C)

decrease by $27,000.

D)

increase by $27,000.

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