Entole Company began operations in 2014.During the first two years of operations,Entole made undiscovered errors in taking its year-end inventories that overstated 2014 ending inventory by $50,000 and understated 2015 ending inventory by $40,000.The combined effect of these errors on reported income is 2014 2015 2016

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The errors in taking inventories affected the reported income as follows:
- In 2014, the ending inventory was overstated by $50,000. This means that cost of goods sold was understated by $50,000, which would increase net income by $50,000.
- In 2015, the ending inventory was understated by $40,000. This means that cost of goods sold was overstated by $40,000, which would decrease net income by $40,000.
- There is no information given for 2016, so it is not affected by the inventory errors.
Therefore, the combined effect of the errors on reported income is an overstatement of $50,000 in 2014 and an understatement of $90,000 in 2015, and an overstatement of $40,000 cannot be determined as there is no information given for 2016.

Entole Company Began Operations in 2014