Webber Company prepared income statements that reflected pretax profit of $21,000 for 20X1 and $30,000 for 20X2. An audit has determined that there were two errors in the inventory amounts as follows $$\begin{array} { | l | r | r | }
\hline & \text { Amount Reported } & \text { Correct Amount } \
\hline \text { Ending inventory, 20X1 } & \$ 15,000 & \$ 14,000 \
\hline \text { Ending inventory, 20X2 } & 18,000 & 16,000 \
\hline
\end{array}$$ The correct pretax profit amount for each year is (show computations assuming the errors were not corrected): 20X1: $__________________ 20X2: $__________________

Question

Webber Company prepared income statements that reflected pretax profit of $21,000 for 20X1 and $30,000 for 20X2. An audit has determined that there were two errors in the inventory amounts as follows $$\begin{array} { | l | r | r | } 
\hline & \text { Amount Reported } & \text { Correct Amount } \
\hline \text { Ending inventory, 20X1 } & \$ 15,000 & \$ 14,000 \
\hline \text { Ending inventory, 20X2 } & 18,000 & 16,000 \
\hline
\end{array}$$ The correct pretax profit amount for each year is (show computations assuming the errors were not corrected): 20X1: $__________________ 20X2: $__________________

Quizplus · Accepted Answer

The Answer of Webber Company prepared income statements that reflected pretax profit of $21,000 for 20X1 and $30,000 for 20X2. An audit has determined that there were two errors in the inventory amounts as follows $$\begin{array} { | l | r | r | } 
\hline & \text { Amount Reported } & \text { Correct Amount } \
\hline \text { Ending inventory, 20X1 } & \$ 15,000 & \$ 14,000 \
\hline \text { Ending inventory, 20X2 } & 18,000 & 16,000 \
\hline
\end{array}$$ The correct pretax profit amount for each year is (show computations assuming the errors were not corrected): 20X1: $__________________ 20X2: $__________________

Webber Company Prepared Income Statements That Reflected Pretax Profit of $21,000