Question: Loring Tools, Inc., failed to make year-end adjustments to record accrued salaries and recognize interest receivable on investments over the last three years as follows:

Loring Tools, Inc., failed to make year-end adjustments to record accrued salaries and recognize interest receivable on investments over the last three years as follows:

What impact would the correction of these errors have on the net income for these three years? Ignore incometaxes.

2006 2007 2008 Accrued salaries Interest receivable $25,000 10,500 $19,000 8,500 $32,000 13,200

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