22.20

Hi I need help with the assignment attached, thanks

The before-tax income for Cullumber Co. for 2017 was $96,000 and $74,600 for 2018. However, the accountant noted that the following errors had been made: 1 . Sales for 2017 included amounts of $40,700 which had been received in cash during 2017, but for which the related products were delivered in 2018. Title did not pass to the purchaser until 2018. 2 . The inventory on December 31, 2017, was understated by $8,000. 3 . The bookkeeper in recording interest expense for both 2017 and 2018 on bonds payable made the following entry on an annual basis. Interest Expense Cash 13,800 13,800 The bonds have a face value of $230,000 and pay a stated interest rate of 6%. They were issued at a discount of $16,000 on January 1, 2017, to yield an effective-interest rate of 7%. (Assume that the effective-yield method should be used.) 4 . Ordinary repairs to equipment had been erroneously charged to the Equipment account during 2017 and 2018. Repairs in the amount of $8,400 in 2017 and $8,700 in 2018 were so charged. The company applies a rate of 10% to the balance in the Equipment account at the end of the year in its determination of depreciation charges. Prepare a schedule showing the determination of corrected income before taxes for 2017 and 2018. (Enter negative amounts using either a negative sign preceding the number e.g. -15,000 or parentheses e.g. (15,000). Round answers to 0 decimal places, e.g. 125.) 2017 2018 $ $ $ $ Income Before Tax Corrections: Corrected Income Before Tax