Information Required:
Assuming That No Corrections Were Made in Any Year

question 47

Essay

Information:
$\begin{array}{rrr}& \text { Net Income } & \text { Error in } \\\text { Year } & \text { per Books } & \text { Ending Inventory } \\2010 & \$ 75,000 & \$ 2,000 \text { Overstatement } \\2011 & 54,000 & 2,800 \text { Understatement } \\2012 & 96,000 & 1,900 \text { Overstatement }\end{array}$ Required:
Assuming that no corrections were made in any year, compute the correct income for each of the three years.

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Definitions:

Transactions

The actions conducted between parties to buy, sell, or exchange goods, services, or financial instruments, typically recorded and mediated through various means.