On 31 December 20X5, Office Systems Ltd.'s books showed an ending inventory valuation of $370,000. The accounts for 20x5 have been adjusted and closed. Subsequently, the bookkeeper prepared a schedule that showed that the inventory should be $434,250, not $378,000. a. 378,000 $ 8,500 Merchandise in store (at 40% above cost) b.Merchandise purchased, in transit (shipped FOB destination, estimated freight, not included, $475), invoice price c. Merchandise held for later shipment to Davis Electronics at sales price, 40% above cost (already billed to Davis Electronics) d.Merchandise out on consignment at sales price (cost, $7,800) e.Merchandise (office equipment) removed from the warehouse and now used in the company's marketing office (at cost) f. Merchandise out on approval, sales price = $6,750, cost = $2,700 11,900 15,600 13,500 6,750 434,250 Income tax rate = 30% Required: 1. Review the items making up the list of inventory. Compute the correct ending inventory amount. Cost of Inventory: Corrected inventory, 31 December 20x5 $ 0 2. The income statement and SFP now reflect a closing inventory of $370,000. 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 liabilities