Bonita Corporation, a private company, began operations on January 1, 2020. During its first three years of operations, Bonita reported net income and declared dividends as follows: 2020 2021 2022 Net income $55,000 140,000 167,000 Dividends declared $0 Income before income tax 50,000 50,000 The following information is for 2023: Correction of prior period error: understatement of 2021 depreciation expense (before tax) Cumulative increase in prior years' income from change in inventory method (before tax) 4 $310,000 40,000 50,000

Bonita Corporation, a private company, began operationis on January 1, 2020. During its first three years of operations, Bonita reported net income and declared dividends as follows: The following information is for 2023 : Income before income tax Correction of prior period error: understatement of 2021 depreciation expense (before tax) Cumulative increase in prior years' income from change in inventory method (before tax) $310,00040,00050,000 The ledger of Blossom Company has the following work in process inventory account: Production records show that there were 380 units in the beginning inventory, 30% complete, 1,150 units started into production, and 1,150 units completed and transferred out. The beginning work in process inventory had materials costs of $1,800 and conversion costs of $1,700. The units in ending inventory were 40% complete as to conversion costs. Materials are entered at the beginning of the painting process, and conversion costs are incurred uniformly throughout the process. Bonita Corporation, a private company, began operationis on January 1, 2020. During its first three years of operations, Bonita reported net income and declared dividends as follows: The following information is for 2023 : Income before income tax Correction of prior period error: understatement of 2021 depreciation expense (before tax) Cumulative increase in prior years' income from change in inventory method (before tax) $310,00040,00050,000 The ledger of Blossom Company has the following work in process inventory account: Production records show that there were 380 units in the beginning inventory, 30% complete, 1,150 units started into production, and 1,150 units completed and transferred out. The beginning work in process inventory had materials costs of $1,800 and conversion costs of $1,700. The units in ending inventory were 40% complete as to conversion costs. Materials are entered at the beginning of the painting process, and conversion costs are incurred uniformly throughout the process