On 31 December 20X5, Office Systems Ltd.s books showed an ending inventory valuation of $410,000. The accounts for 20X5 have been adjusted and closed. Subsequently, the bookkeeper prepared a schedule that showed that the inventory should be $501,250, not $434,000. a. Merchandise in store (at 40% above cost) $ 434,000 b. Merchandise purchased, in transit (shipped FOB destination, estimated freight, not included, $575), invoice price 10,500 c. Merchandise held for later shipment (due to a difficulty finding a shipper rather than being at the customer's request) to Davis Electronics at sales price, 40% above cost (already billed to Davis Electronics) 14,700 d. Merchandise out on consignment at sales price (cost, $9,400) 18,800 e. Merchandise (office equipment) removed from the warehouse and now used in the companys marketing office (at cost) 15,500 f. Merchandise out on approval, sales price = $7,750, cost = $3,100 7,750 $ 501,250 Income tax rate = 30% Required: 1. Review the items making up the list of inventory. Compute the correct ending inventory amount. 2. The income statement and SFP now reflect a closing inventory of $410,000. List the items on the income statement and SFP for 20X5 that should be corrected for the above errors give the amount of the error for each item affected