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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.
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