JP Corporation Had Net Income of $1,000,000 for 2017

question 62

Multiple Choice

JP Corporation had net income of $1,000,000 for 2017.After issuing its financial statements,it realized that it had failed to include inventory from one of its small warehouses for several years.Specifically,it forgot to include $20,000 on December 31,2016,and $30,000 on December 31,2017.Which of the following is TRUE regarding JPs 2017 net income?

• A)Net income was understated by $10,000.
• B)Net income was overstated by $10,000.
• C)Net income was understated by $30,000.
• D)Net income was overstated by $30,000.

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