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Current Attempt in Progress The before-taxincome for Sarasota Co. for 2020 was $94,000 and $84,300 for 2021 . However, the accountant noted that the following

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Current Attempt in Progress The before-taxincome for Sarasota Co. for 2020 was $94,000 and $84,300 for 2021 . However, the accountant noted that the following errors had been made: 1. Sales for 2020 included amounts of $35,000 which had been received in cash during 2020 , but for which the related products were delivered in 2021. Title did not pass to the purchaser untii 2021. 2. The inventory on December 31,2020 , was understated by $8,600. 3. The bookkeeper in recording interest expense for both 2020 and 2021 on bonds payable made the following entry on an annual basis. Interest Expense 15,000 Cash 15,000 The bonds have a face value of $250,000 and pay a stated interest rate of 6% They were issued at a discount of $14,000 on January 1, 2020, to yield an effective-interest rate of 7%. (Assume that the effective-yield method should be used.) 4. Ordinary repairs to equipment had been erroneously charged to the Equipment account during 2020 and 2021 . Repairs in the amount of $8,200 in 2020 and $9,200 in 2021 were so charged. The company applies a rate of 10% to the balance in the Equipment account at the end of the year in its determination of depreclation charges. Prepare a schedule showing the determination of corrected income before taxes for 2020 and 2021 . (Enter negotive amounts using either a negative sign preceding the number es, -15,000 or parentheses eg. (15,000). Round answers to 0 decimal places es: 125) 4. Ordinary repairs to equipment had been erroneously charged to the Equipment account during 2020 and 2021 . Repairs in the amount of $8,200 in 2020 and $9,200 in 2021 were so charged. The company applies a rate of 10% to the balance in the Equipment account at the end of the year in its determination of depreciation charges. Prepare a schedule showing the determination of corrected income before taxes for 2020 and 2021. (Enter negative amounts using either a negotive sign preceding the number eg. 15,000 or porentheses eg. (15,000). Round answers to 0 decimal places, eg. 125

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