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Liche Company Reported Net Income of $54,000 in 2022 and $80,000

question 192

Essay

Liche Company reported net income of $54,000 in 2022 and $80,000 in 2023. However, ending inventory was overstated by $6,000 in 2022.
Instructions
Compute the correct net income for Liche Company for 2022 and 2023.


Definitions:

Academic Term

A period of study in an educational institution, often divided into semesters, trimesters, or quarters.

Lab Fee

A charge specifically related to the use of laboratory equipment or participation in laboratory-based classes.

Treasury Bonds

Long-term, fixed-interest securities issued by the U.S. government as a way of borrowing money to fund its operations and projects.

Issue Price

The price at which new shares or bonds are offered to the public by a company or government for the first time.

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