On 31 December 20X5, Office Systems Ltd.'s books showed an ending inventory valuation of $470,000. The accounts for 20X5 have been adjusted and closed. Subsequently, the bookkeeper prepared a schedule that showed that the inventory should be $616,450, not $532,000 a. Merchandise in store (at 40% above cost) Merchandise purchased, in transit (shipped FOB destination, estimated freight, not included, $725), invoice price C. Merchandise held for later shipment (Terms: FOB Destination; The delay is 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) d. Merchandise out on consignment at sales price (cost, $11,800) e Merchandise (office equipment) removed from the warehouse and now used in the company's marketing office (at cost) t.Merchandise out on approval, sales price $9,250, cost = $3,700 $ 532,000 b. 13,500 19,600 23,600 18,500 9,250 616,450 Income tax rate 30% Income tax rate =30% Required: 1. Review the items making up the list of inventory. Compute the correct ending inventory amount. Cost of Inventory Comected inventory, 31 December 20S S 2. The income statement and SFP now reflect a closing inventory of $470,000 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 Statement of Comprehensive Income: Statement of Financial Position Current assets Current labilities