Question: Cornerstone Exercise 6-28 (Algorithmic) Inventory Errors McLelland Inc. reported net income of $150,000 for 2019 and $165,000 for 2020. Early in 2020, McLelland discovers that

Cornerstone Exercise 6-28 (Algorithmic) Inventory Errors McLelland Inc. reported net income

Cornerstone Exercise 6-28 (Algorithmic) Inventory Errors McLelland Inc. reported net income of $150,000 for 2019 and $165,000 for 2020. Early in 2020, McLelland discovers that the December 31, 2019 ending inventory was overstated by $8,700. For simplicity, ignore taxes Required: 1. What is the correct net income for 2019? For 20207 Net Income 2019 2020 2. Assuming the error was not corrected, what is the effect on the balance sheet at December 31, 2019? At December 31, 20207 December 31, 2019 December 31, 2020

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