6. The company adopts the specific identification method with respect to its inventory cost flow assumption....

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6. The company adopts the specific identification method with respect to its inventory cost flow assumption. The company's income statement for the year ended December 31, 2015 showed a net income of $83,600. Before releasing the financials, the auditor found that $18,000 paid for the purchase of a truck had been debited in error to the inventory account. The truck was not sold during the year of 2015 because of little demand from customers, and as a result, the firm's accountant recognized the loss of $18,000 during the inventory write-down process regarding the truck. It is the company's policy to depreciate trucks at 25% per year on the straight line basis, with a full year's charge in the year of acquisition. Assume that there is zero residual value for the truck. The company strictly follows the historical cost principle in determining the book value of Equipment that should be reported at the fiscal year-end date. What would the net income be after adjusting for this error? 6. The company adopts the specific identification method with respect to its inventory cost flow assumption. The company's income statement for the year ended December 31, 2015 showed a net income of $83,600. Before releasing the financials, the auditor found that $18,000 paid for the purchase of a truck had been debited in error to the inventory account. The truck was not sold during the year of 2015 because of little demand from customers, and as a result, the firm's accountant recognized the loss of $18,000 during the inventory write-down process regarding the truck. It is the company's policy to depreciate trucks at 25% per year on the straight line basis, with a full year's charge in the year of acquisition. Assume that there is zero residual value for the truck. The company strictly follows the historical cost principle in determining the book value of Equipment that should be reported at the fiscal year-end date. What would the net income be after adjusting for this error?