Effect of the errors on net income

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Reference no: EM13134017

Moonland Company's income statement contained the following errors:

Ending inventory, December 31, 2009, understated by $6,000

Depreciation expense for 2009 overstated by $1,000

What is the effect of the errors on 2009 net income before taxes?

A. Overstated by $5,000.
B. Understated by $5,000.
C. Understated by $7,000.
D. Overstated by $7,000.

Reference no: EM13134017

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