3. In the course of its year-end audit for 2020, ABC Company discovered the following inventory problems: (1) The 2019 ending inventory was understated by $6,000. (2) A $9,000 credit purchase of merchandise was made on December 22, 2018. Because the merchandige was on hand on December 31, 2018, it was counted in the physical and included in the 2018 ending inventory. However, the purchase was not recorded until January 4, 2019, when the invoice was paid. Before discovery of the inventory situations, net income for 2019 was $160,000 and preliminary net income for 2020 was $170,000. All other adjustments for 2020 have been made, but the accounts have not been closed. Ignoring income taxes, ABC should report 2019 and 2020 net income of: $151,000 and $179,000. $157,000 and $173,000 $160,000 and $185,000 $169,000 and $161,000 a b. C d. 4. On December 31, 2020, Ellworth, Inc. appropriately changed its inventory valuation method to FIFO finland TI