Delta Co. began operations on January 1, 20X1. During 20X1 and 20X2, the company used the weighted-average method for its inventory costing. In 20X3, the company changed its method of inventory costing to FIFO so that its financial statements would be more comparable to those of other firms in its industry. If the FIFO method had been used, Deltas cost of goods sold would have been $45,000 less in 20X1 and $35,000 less in 20X2. Deltas income statements, as originally presented, appear below. Deltas tax rate is 21%.

		20X1			20X2			20X3
Sales	$	1,000,000		$	1,100,000		$	1,210,000
Cost of goods sold		645,000			695,000			726,000
Gross profit		355,000			405,000			484,000
Selling, general and administrative expenses		250,000			255,000			265,000
Depreciation expense		55,000			55,000			55,000
Income before tax		50,000			95,000			164,000
Income tax expense		10,500			19,950			34,440
Net income	$	39,500		$	75,050		$	129,560

Required: Assume that for comparison purposes Delta presents 20X1 and 20X2 income statements in its 20X3 annual report. Revise Deltas 20X1 and 20X2 income statements to appear as they should in the 20X3 annual report.