Use the Following Information for Question 102-103

question 167

Multiple Choice

Use the following information for question 102-103.
During its December 31, 2014 year-end inventory count, Jefferson Company failed to count items in transit to which it had legal title. As a result of this error, ending inventory was understated by $30,000.
-Assuming the company makes no errors in 2015, Jefferson's owner's equity at the end of December 2015 will be

• A) overstated by $30,000.
• B) understated by $30,000.
• C) overstated by $60,000.
• D) correct.

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Definitions:

Anterior Tibial Artery

A major blood vessel in the lower leg that supplies blood to the anterior compartment of the leg and dorsum of the foot.

Posterior Tibial Artery

A major artery of the lower leg, supplying blood to the posterior compartment of the leg and plantar surface of the foot.

Thoracic Aorta

The portion of the aorta passing through the chest, from which arise the branches that supply oxygenated blood to the chest cage and organs within the thorax.

Abdominal Aorta

The main artery that runs down the abdomen and supplies blood to the organs and tissues of the abdomen.