Goofy Company reported proﬁt for 20X1 of $30,000, and in 20X2 $40,000 (both after income taxes at a 20% rate). It was discovered in 20X3 that the ending inventory for 20X1 was overstated by 8,000 (before any income tax effect). The correct proﬁt (after income tax of 20%) should be: 20X1 $_______________________ 20X2 $_______________________

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The Answer of Goofy Company reported proﬁt for 20X1 of $30,000, and in 20X2 $40,000 (both after income taxes at a 20% rate). It was discovered in 20X3 that the ending inventory for 20X1 was overstated by 8,000 (before any income tax effect). The correct proﬁt (after income tax of 20%) should be: 20X1 $_______________________ 20X2 $_______________________

Goofy Company Reported Proﬁt for 20X1 of $30,000, and in 20X2