Straightarm Inc. is a calendar-year corporation. Its financial statements for the years ended 12/31/17 and 12/31/18 contained the following errors: 2018 Net Income is in error by:

Select one:

a. $54,000

b. $43,000

c. $58,000

d. $69,000

e. $42,000

2017 2018 Ending inventory $15,000 understatement $24,000 overstatement Depreciation expense $6,000 understatement $12,000 understatement Failed to record Unearned Revenue at 12/31/18: $7,000 Straightarm declared a cash dividend of $11,000 on 12/31/18. No journal entry was made in 2018. The dividend was paid on 1/3/19. Straightarm debited Retained Earnings and credited Cash