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Citrin Corporation reported the following information related to 2017 and 2018:
		2017		2018
Beginning inventory		$ 634,400		$ 530,400
Purchases		1,899,990		2,450,500
Cost of goods available for sale		$ 2,534,390		$ 2,980,900
Less: Ending inventory		530,400		480,000
Cost of goods sold		$ 2,003,990		$ 2,500,900
Sales		$ 3,003,990		$ 4,500,900
Cost of goods sold		2,003,990		2,500,900
Gross profit		$ 1,000,000		$ 2,000,000
The 2017 ending inventory value used in the above presentation erroneously failed to include $200,000 of goods purchased FOB shipping point. The purchase and related accounts payable were correctly recorded by Citrin Corporation (only the Ending Inventory is misstated). Citrin Corporation uses a periodic inventory system.
(a)	Prepare a corrected presentation of the above data.
(b)	Prepare a corrected presentation of the above data, but this time assume that the company attempts to correct the error from 2017 and counts the $200,000 missing shipment twice in the 2018 ending inventory (the 2018 ending inventory is overstated).
(c)	In part (a), does the error matter, given that the combined gross profit for both years is $3,000,000 under both the incorrect and correct presentation?
(d)	What error(s) would have been included in the December 31, 2017 balance sheet? HINT: Assets = Liabilities + Equity. If inventory is misstated, then another account must also be misstated if the accounting equation remains in balance.

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