Several years ago, the financial statements of Gibson Greeting Cards, now part of American Greetings, contained the following note: On July 1, the Company announced that it had determined that the inventory … had been overstated.… The overstatement of inventory … was $8,806,000. Gibson reported an incorrect net income amount of $25,852,000 for the year in which the error occurred and the income tax rate was 39.3 percent. Required: 1. Compute the amount of net income that Gibson reported after correcting the inventory error.
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Several years ago, the financial statements of Gibson Greeting Cards, now part of American Greetings...
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