Question: Elliott Corp.s beginning inventory on 1/1/22 was overstated by $65,000. In addition, in 2022, Elliott overstated the cost of its net purchases by $25,000. The

Elliott Corp.s beginning inventory on 1/1/22 was overstated by $65,000. In addition, in 2022, Elliott overstated the cost of its net purchases by $25,000. The cost of ending inventory on 12/31/22 is correctly stated.

Before any adjustments for the above error items, Elliotts net income on its 2022 income statement was $8,000,000.

Assuming Elliott corrects these errors, what should Elliott report as its corrected net income for 2022? Ignore income tax effects.

A $7,910,000

B $8,040,000

C $7,960,000

D $8,000,000

E $8,090,000

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