Excercise 10-15 Correcting inventory errors (LO10-14)

The following inventory valuation errors have been discovered for Knox Corporation:

• The 20X1 year-end inventory was overstated by $23,000.
• The 20X2 year-end inventory was understated by $61,000.
• The 20X3 year-end inventory was understated by $17,000.

The reported income before taxes for Knox was:

Year	Income before Taxes
20X1	$	138,000
20X2		254,000
20X3		168,000

Required:

Compute what income before taxes for 20X1, 20X2, and 20X3 should have been after correcting for the errors.

20X1 20X2 20X3

Income before taxes after error corrections ? ? ?