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During the taking of the physical inventory, the company inadvertently counted its inventory as $98,000 instead of the correct amount of $89,000. Indicate the effect of the misstatement on the balance sheet of the current year. a. Liabilities are overstated by $9,000. b. Assets are understated by $9,000. c. Stockholders' equity is understated by $9,000. d. Assets are overstated by $9,000.
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