ABC Co. has the following information relating to some errors that were discovered regarding their income statement in 2013 and 2014:
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Ending Inventory
|
Depreciation Expense
|
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2013
|
$3,000 overstated
|
$1,000 understated
|
|
2014
|
$2,000 understated
|
$4,000 overstated
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ABC Co reported a net income of $95,000 in 2013 and $90,000 in 2014. Assume that no corrections were made and ignore income taxes.
1) Calculate the corrected net income for 2013 and 2014. Please show all calculations.