The Following Inventory Valuation Errors Were Discovered by Knox Corporation's

question 43

Multiple Choice

The following inventory valuation errors were discovered by Knox Corporation's new controller just after the annual financial statements were published at the end of Year 3. > The Year 3 ending inventory was understated by $17,000.
> The Year 2 ending inventory was understated by $61,000.
> The Year 1 ending inventory was overstated by $23,000.
The net income for Knox in each of these years was: Assuming there were no income taxes and no corrections were made prior to the discovery of the errors after the end of year 3,the net income in each year should be adjusted to:

• A) choice a.
• B) choice b.
• C) choice c.
• D) choice d.

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Definitions:

Hemoglobin

A protein in red blood cells that carries oxygen from the lungs to the tissues of the body.

Staples

Metal clips used during surgery to close wounds or incisions, faster than suturing and often used for larger or deeper cuts.

Sutures

Threads or staples used by surgeons to close wounds or surgical incisions.

Erythema

Skin redness or rash caused by increased blood flow to the superficial capillaries.