Ajax Inc. reported net incomes for the last three years as follows:

2018

$ 62,000

2019

$ 63,000

2020

$ 60,000

In reviewing the accounts in 2021 (after the books for the prior year had been closed), you find that the following errors have been made:

2018

2019

2020

Overstatement of ending inventory

$ 7,000

$ 8,500

$ 4,000

Understatement of accrued advertising expense

$ 1,100

$ 2,000

$ 1,200

Which of the following statements is correct?

(A)Adjusted net income for 2018 should be $ 67,900

(B)Adjusted net income for 2018 should be $ 56,100

(C)Adjusted net income for 2019 should be $ 64,600

(D)Adjusted net income for 2019 should be $ 60,600

(E)Adjusted net income for 2020 should be $ 67,700