Albert Company discovers in 2017 that its ending inventory at December 31, 2016, was $5,000 understated. What

Question:

Albert Company discovers in 2017 that its at December 31, 2016, was $5,000 understated. What effect will this error have on
(a) 2016 net income,
(b) 2017 net income, and
(c) The combined net income for the 2 years?
Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...