____ 12. When the current year's ending inventory amount is overstated,

a.	the current year's cost of goods sold is overstated.
b.	the current year's total assets are understated.
c.	the current year's net income is overstated.
d.	the next year's income is overstated.

____ 14. An overstatement of ending inventory in 2011 would result in income of 2012 being

a.	overstated.
b.	understated.
c.	correctly stated.
d.	The answer cannot be determined from the information given.

____ 17. When valuing raw materials inventory at lower of cost or market, what is the general meaning of the term "market"?

a.	Net realizable value
b.	Net realizable value less a normal profit margin
c.	Current replacement cost
d.	Discounted present value

____ 19. Davis Company's accounting records indicated the following information:

Inventory, 1/1/16 .....................................	1,000,000
Purchases during 2016 .................................	5,000,000
Sales during 2016 .....................................	6,400,000

A physical inventory taken on December 31, 2016, revealed actual ending inventory at cost was $1,150,000. Davis' gross profit on 2016 sales was 25 percent. The company believes some inventory may have been stolen during the year. What is the estimated amount of missing inventory at December 31, 2016?

a.	$50,000
b.	$200,000
c.	$350,000
d.	$450,000