27. An item of inventory purchased this period for $ 15.00 has been incorrectly written down to its current replacement cost of $ 10.00. It sells during the following period for $ 30.00, its normal selling price, with disposal costs of $ 3.00 and normal profit of $ 12.00. Which of the following statements is not true?
a. The cost of sales of the following year will be understated.
b. The current year ' s income is understated.
27. An item of inventory purchased this period for $ 15.00 has been incorrectly written down to its current replacement cost of $ 10.00. It sells during the following period for $ 30.00, its normal selling price, with disposal costs of $ 3.00 and normal profit of $ 12.00. Which of the following statements is not true?
a. The cost of sales of the following year will be understated.