The following inventory valuation errors have been discovered for Knox Corporation:
• The 2006 year-end inventory was overstated by \($23,000\).
• The 2007 year-end inventory was understated by \($61,000\).
•The 2008 year-end inventory was understated by \($17,000\).

The reported income before taxes for Knox was:

Required:
Compute what income before taxes for 2006, 2007, and 2008 should have been after correcting for the errors.

Transcribed Image Text:

Year Income before Taxes 2006 $138,000 2007 2008 254,000 168,000