Silver Sage Company prepared income statements that reflected pretax income of $47,000 for 2021 and $65,000...

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Silver Sage Company prepared income statements that reflected pretax income of $47,000 for 2021 and $65,000 for 2022. An audit has determined that there were two errors in the inventory amounts as follows: Ending inventory, 2021 Ending inventory, 2022 Pretax income Amount Reported Correct Amount $35,000 41,000 Required: Determine the correct pretax income amount for each year (show computations; assume the errors were not corrected): 2021 $33,000 37,000 2022 Silver Sage Company prepared income statements that reflected pretax income of $47,000 for 2021 and $65,000 for 2022. An audit has determined that there were two errors in the inventory amounts as follows: Ending inventory, 2021 Ending inventory, 2022 Pretax income Amount Reported Correct Amount $35,000 41,000 Required: Determine the correct pretax income amount for each year (show computations; assume the errors were not corrected): 2021 $33,000 37,000 2022

Answer rating: 100% (QA)

To determine the correct pretax income for each year we need to adjust the reported endin... View the full answer