The Correct 2014 Net Income for Magness Company, After Error

question 6

Multiple Choice

The correct 2014 net income for Magness Company, after error corrections, was $56,000. Two errors were found after net income was first reported. The January 1, 2014 inventory and the December 31, 2014, inventory were overstated by $5,000 and $10,000, respectively. The net income that must have been originally reported was

• A) $41,000
• B) $66,000
• C) $71,000
• D) $61,000

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Definitions:

Insomnia

A medical condition characterized by difficulty falling asleep, staying asleep, or experiencing restful sleep.

Mood Disorders

Psychological disorders characterized by the elevation or lowering of a person's mood, such as depression or bipolar disorder.

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Disturbing dreams that cause the dreamer to wake up feeling anxious and frightened.

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Units of heredity made up of DNA. They act as instructions to make molecules called proteins, influencing individual traits that are inherited from parents.