Maria Company reported the following net income amounts: 2017, $140,000; 2018, $116,000; and 2019, $106,000. In 2020, the company discovered errors that had been made in computing the ending inventories for 2017 and 2018, as follows:
2017 Ending inventory overstated by $12,000
2018 Ending inventory understated by $6,000
Compute the correct net incomes for 2017, 2018, and 2019.

Question

Maria Company reported the following net income amounts: 2017, $140,000; 2018, $116,000; and 2019, $106,000. In 2020, the company discovered errors that had been made in computing the ending inventories for 2017 and 2018, as follows: 
2017 Ending inventory overstated by $12,000
2018 Ending inventory understated by $6,000
Compute the correct net incomes for 2017, 2018, and 2019.

Quizplus · Accepted Answer

The Answer of Maria Company reported the following net income amounts: 2017, $140,000; 2018, $116,000; and 2019, $106,000. In 2020, the company discovered errors that had been made in computing the ending inventories for 2017 and 2018, as follows: 
2017 Ending inventory overstated by $12,000
2018 Ending inventory understated by $6,000
Compute the correct net incomes for 2017, 2018, and 2019.

Maria Company Reported the Following Net Income Amounts: 2017, $140,000;