During its first and second years of operations, Forrester Company, a corporation using a periodic inventory system, made undiscovered errors in taking its year-end inventories that understated Year 1 ending inventory by $40,000 and overstated Year 2 ending inventory by $55,000. The combined effect of these errors on reported income is:

Year 1 : ( ) Year 2 : ( ) Year 3 : ( )