During the audit of Virginia Company’s 20X2 financial statements, the auditors discovered that the 20X1 ending inventory had been overstated by $10,000 and that the 20X2 ending inventory had been

During the audit of Virginia Company’s 20X2 financial statements, the auditors discovered that the 20X1 ending inventory had been overstated by $10,000 and that the 20X2 ending inventory had been overstated by $8,000. Before the effect of these errors, 20X2 pretax profit had been computed as $100,000. What should be reported as the correct 20X2 profit before taxes?
A) $98,000
B) $100,000
C) $102,000
D) $118,000


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