Question: At the beginning of Year 1, the companys inventory level was stated correctly. At the end of Year 1, inventory was overstated by $2,000. At

At the beginning of Year 1, the company’s inventory level was stated correctly. At the end of Year 1, inventory was overstated by $2,000. At the end of Year 2, inventory was understated by $450. At the end of Year 3, inventory was correctly stated. Reported net income was $3,000 in Year 1, $3,000 in Year 2, and $3,000 in Year 3. Compute the correct amount of net income in
(1) Year 1,
(2) Year 2, and
(3) Year 3. Ignore income taxes.

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