Use This Information to Answer the Following Question

question 28

Multiple Choice

Use this information to answer the following question. In addition,beginning merchandise inventory was $44,000 and ending merchandise inventory was $28,000.
If beginning and ending merchandise inventories were ignored in computing net income,then net income would be

• A) understated by $44,000.
• B) overstated by $16,000.
• C) understated by $28,000.
• D) understated by $16,000.

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Definitions:

Organic Reaction

A chemical reaction involving organic compounds, where these compounds are typically based on carbon.

Diels-Alder Reactions

A chemical reaction between a conjugated diene and a dienophile to form a cyclohexene derivative.

Cyclopentadiene

A cyclical diolefin molecule known for its unique reactivity, utilized in Diels-Alder reactions, and producing polymers and resins.

1,3-Butadiene

An organic chemical compound that is a colorless gas with a mild gasoline-like odor, used in the production of synthetic rubber and polymers.