Happy House Corporation Reported Net Income of $425,000 for the Current

question 34

Multiple Choice

Happy House Corporation reported net income of $425,000 for the current year. After the financial statements had been prepared, it was discovered that ending inventory had been overstated by $25,000. The correct net income was:

• A) $450,000.
• B) $425,000.
• C) $400,000.
• D) $300,000.

---

Definitions:

Clean Air Act

Federal legislation in the United States aimed at controlling air pollution by setting emissions standards for factories, vehicles, and other sources.

Air Quality

The degree to which the air in a particular place is free from pollutants.

Air Quality

Refers to the cleanliness or pollution level of the air in a specific area, impacting health and environment.

Federal Gasoline Tax

A tax imposed by the federal government on the sale of gasoline, primarily used to fund transportation projects.