During the Audit of Virginia Company's 20B Financial Statements, the Auditors

question 20

Multiple Choice

During the audit of Virginia Company's 20B financial statements, the auditors discovered that the 20A ending inventory had been overstated by $10,000 and that the 20B ending inventory had been overstated by $8,000. Before the effect of these errors, 20B pretax profit had been computed as $100,000. What should be reported as the correct 20B profit before taxes?

• A) $100,000
• B) $102,000
• C) $98,000
• D) $118,000

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