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Hull Company reported the following income statement information for the current year: Sales $ 416,000 Cost...

Hull Company reported the following income statement information for the current year: Sales $ 416,000 Cost of goods sold: Beginning inventory $ 141,000 Cost of goods purchased 279,000 Cost of goods available for sale 420,000 Ending inventory 150,000 Cost of goods sold 270,000 Gross profit $ 146,000 The beginning inventory balance is correct. However, the ending inventory figure was overstated by $26,000. Given this information, the correct gross profit would be:

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Incorrect gross profit Less: Overstated amount of ending inventory Correct gross profit 146,000 26,000 120,000

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