Cullumber Co. reported before-tax income of $413,000 in 2017 and $329,000 for 2018. However, the companys new controller found that the following errors had been made:

1.

Sales for 2018 included $21,000 which had been received in cash during 2018, but for which the related products were delivered and title passed to the purchaser in 2017.

2.

Inventory on December 31, 2017, was overstated by $6,200.

3.

Ordinary repairs to equipment in the amount of $19,600 were erroneously charged to the Equipment account during 2017. The company recorded a full year of depreciation on this amount in 2017 and 2018 on a straight-line basis assuming a 10-year life.

4.

The bookkeeper in recording interest expense for both 2017 and 2018 on bonds payable made the following entry on an annual basis.

Interest Expense		21,690
Cash				21,690

The bonds have a face value of $241,000 and pay a stated interest rate of 9%. They were issued at a premium of $9,622 on January 1, 2017, to yield an effective-interest rate of 8%. (Assume that the effective-yield method should be used.)

Prepare a schedule showing the determination of corrected income before taxes for 2017 and 2018. (Round answers to 0 decimal places, e.g. 5,125.)

		2017		2018
select an opening name 2017 Sales Erroneously Included in 2018 IncomeAdjustment to Bond Interest ExpenseCorrected Income Before TaxDepreciation Recorded on Improperly Capitalized RepairsIncome Before TaxOverstatement of 2017 Ending InventoryRepairs Erroneously Charged to the Equipment Account		$enter a dollar amount		$enter a dollar amount
Corrections:
select an item 2017 Sales Erroneously Included in 2018 IncomeAdjustment to Bond Interest ExpenseCorrected Income Before TaxDepreciation Recorded on Improperly Capitalized RepairsIncome Before TaxOverstatement of 2017 Ending InventoryRepairs Erroneously Charged to the Equipment Account		enter a dollar amount		enter a dollar amount
select an item 2017 Sales Erroneously Included in 2018 IncomeAdjustment to Bond Interest ExpenseCorrected Income Before TaxDepreciation Recorded on Improperly Capitalized RepairsIncome Before TaxOverstatement of 2017 Ending InventoryRepairs Erroneously Charged to the Equipment Account		enter a dollar amount		enter a dollar amount
select an item 2017 Sales Erroneously Included in 2018 IncomeAdjustment to Bond Interest ExpenseCorrected Income Before TaxDepreciation Recorded on Improperly Capitalized RepairsIncome Before TaxOverstatement of 2017 Ending InventoryRepairs Erroneously Charged to the Equipment Account		enter a dollar amount		enter a dollar amount
select an item 2017 Sales Erroneously Included in 2018 IncomeAdjustment to Bond Interest ExpenseCorrected Income Before TaxDepreciation Recorded on Improperly Capitalized RepairsIncome Before TaxOverstatement of 2017 Ending InventoryRepairs Erroneously Charged to the Equipment Account		enter a dollar amount		enter a dollar amount
select an item 2017 Sales Erroneously Included in 2018 IncomeAdjustment to Bond Interest ExpenseCorrected Income Before TaxDepreciation Recorded on Improperly Capitalized RepairsIncome Before TaxOverstatement of 2017 Ending InventoryRepairs Erroneously Charged to the Equipment Account		enter a dollar amount		enter a dollar amount
select a closing name 2017 Sales Erroneously Included in 2018 IncomeAdjustment to Bond Interest ExpenseCorrected Income Before TaxDepreciation Recorded on Improperly Capitalized RepairsIncome Before TaxOverstatement of 2017 Ending InventoryRepairs Erroneously Charged to the Equipment Account		$enter a total amount		$enter a total amount