1. At Martinez Company, events and transactions during 2021 included the following three items. The tax rate for all items is 25%.

1. Depreciation Expense for 2016 was found to have been understated by $100,000. The error was found during 2021.
2. Supply chain problems in 2021resulted in Martinez Company being unable to fulfill one of its sales contracts on a timely basis. Under the terms of that contract, defaulting on the contract resulted in Martinez Company paying a fine to the customer of $100,000.
3. An inventory count at the end of 2021 showed inventory was overstated by $100,000.

What is the effect of each of these three items on the 2021 Income Statement of Martinez Company, net of tax? Explain each of your answers.