Chapter 22 Accounting Changes and Error Analysis 1314 2018 2017 Under- statement Under- statement No Effect Over- statement Over- statement No Effect Item 1. Failure to record amortization of patent in 2018. 2. Failure to record the correct amount of ending 2017 inventory. The amount was understated because of an error in calculation 3. Failure to record merchandise purchased in 2017 Merchandise was also omitted from ending inventory in 2017 but was not yet sold. 4. Failure to record accrued interest on notes payable in 2017; that amount was recorded when paid in 2018. 5. Failure to reflect supplies on hand on balance sheet at end of 2017 Instructions Prepare a schedule showing the determination of corrected income before taxes for 2017 and 2018 E22-21 (L03,4) (Error Analysis) When the records of Debra Hanson Corporation were reviewed at the close of 2018, the following errors were discovered. For each item, indicate by a check mark in the appropriate column whether the error resulted in an overstatement, an understatement, or had no effect on net income for the years 2017 and 2018