Refer to PE 7-60. Compute the correct amount of net income in year 2. Data from PE

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Refer to PE 7-60. Compute the correct amount of net income in year 2.


Data from PE 7-60

At the beginning of year 1, the company’s inventory level was stated correctly. At the end of year 1, inventory was understated by $2,000. At the end of year 2, inventory was overstated by $450. Reported net income was $3,000 in year 1 and $3,000 in year 2. Compute the correct amount of net income in year 1.

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Accounting concepts and applications

ISBN: 978-0538745482

11th Edition

Authors: Albrecht Stice, Stice Swain

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