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:

Entire Income

This term does not correspond to a specific economic concept; it might refer to total earnings or revenue of an individual or entity, but more context is needed for a precise definition. NO.

Uglifruits

A type of citrus fruit known for its unique appearance but sweet and tangy taste.

Breadfruits

A type of large, starchy tropical fruit, which can be used similarly to potatoes and is a staple food in many parts of the world.

Calorie Limit

A specified maximum number of calories to be consumed within a given period, often used for dietary planning or weight management.