Question: Walter Co. made the following errors in 2014: Ending inventory was overstated by $2,000. Beginning inventory was understated by $6,000. Purchases were overstated by $3,000.

Walter Co. made the following errors in 2014:

Ending inventory was overstated by $2,000.
Beginning inventory was understated by $6,000.
Purchases were overstated by $3,000.

Reported net income was $20,000. The correct 2014 net income was

$19,000

$21,000

$15,000

$ 4,000

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