Exercise 8.8 Effects of Errors in Inventory Valuation (LO 8-5) Branson Electric prepared the following condensed income statements for two successive years 2017 Sales Cost of goods sold Gross profit on sales Operating expenses Net income 2018 3,000,000 1,050,000 $ 1,950,000 $2,950,000 800,000 $ 2,150,000 500,000 $ 1,650,000 300,000 $ 1,650,000 At the end of 2017 (right-hand column), the inventory was understated by $41,500, but the error was not discovered until after the accounts had been closed and financial statements prepared at the end of 2018. The balance sheets for the two years showed owner's equity of $640,000 at the end of 2017 and $320,000 at the end of 2018. (Branson is organized as a sole proprietorship and does not incur income taxes expense.) a. Compute the corrected net income figures for 2017 and 2018 b. Compute the gross profit amounts and the gross profit percentages for each year on the basis of corrected data. (Round "Gross profit percentage" to 2 decimal places (i.e. .1234 should be entered as 12.34)) 2018 2017 a. Corrected net income b. Gross profit amount Gross profit percentage