brant Company had $850,000 of sales in each of three consecutive years 20152017, and it purchased merchandise costing $500,000 in each of those years. It also maintained a $250,000 physical inventory from the beginning to the end of that three-year period. In accounting for inventory, it made an error at the end of year 2015 that caused its year-end 2015 inventory to appear on its statements as $230,000 rather than the correct $250,000.

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1. Determine the correct amount of the company's gross profit of the years 2015-2017

2. Prepare comparative income statements to show the effect of this error on the company's cost of goods sold and gross profit.

BRANT COMPANY Comparative Income Statements 2015 2016 2017 3-year Total Cost of goods sold Gross profit