Correction of Inventory Errors Annual income for the Stoker Co. for the period 2004–2008 appears…

Correction of Inventory Errors

Annual income for the Stoker Co. for the period 2004–2008 appears below. However, a review of the records for the company reveals inventory misstatements as listed. Calculate corrected net income for each year.

 

2004

2005

2006

2007

2008

Reported net income (loss)

$18,000

$13,000

$2,000

$ (5,800)

$16,000

Inventory overstatement, end of year

 

5,500

 

 

3,600

Inventory understatement, end of year

4,500

 

 

10,500

 

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