On May 5, 2024, you were hired by Pharoah inc, a closely held company that follows ASPE, as a staff member of its newly created internal auditing department. While reviewing the company's records for 2022 and 2023 , you discover that no adjustments have yet been made for the items listed below. 1. Interest income of $15,792 was not accrued at the end of 2022. It was recorded when received in February 2023. 2. Equipment costing $15,120 was expensed when purchased on July 1, 2022. It is expected to have a four-year life with no residual value. The company typically uses straight-line depreciation for all fixed assets. 3. Research costs of $30,240 were incurred early in 2022. They were capitalized and were to be amortized over a three-year period. Amortization of $10,080 was recorded for 2022 and $10,080 for 2023 . For tax purposes, the research costs were expensed as incurred. 4. On January 2, 2022, Pharoah leased a building for five years at a monthly rental of $7,560. On that date, Pharoah paid the following amounts, which were expensed when paid for both financial reporting and tax purposes: 5. The company received $35,280 from a customer at the beginning of 2022 for services that it is to perform evenly over a three-year period beginning in 2022. None of the amount received was reported as unearned revenue at the end of 2022. The $35,280 was included in taxable income in 2022. 6. Merchandise inventory costing $14,112 was in the warehouse on December 31,2022 , but was incorrectly omitted from the physical count at that date. The company uses the periodic inventory method. Pharoah follows the taxes payable method of accounting for income taxes. Enter the appropriate dollar amounts in the appropriate columns to indicate the effect of any errors on the net income figure reported on the income statement for the year ended December 31, 2022, and the retained earnings figure reported on the statement of financial position at December 31,2023. Assume that all amounts are material and that an income tax rate of 25% is appropriate for all years, Assume also that each item is independent of the other items. You do not need to total the columns on the grid. (Do not leave any answer field blank Enter O for amounts. Round answers to 0 decimal places, es. 5, 125.) Enter the appropriate dollar amounts in the appropriate corumns to indicate the errector any errors on the net income ngure reported on the income statement for the year ended December 31,2022, and the retained earnings figure reported on the statement of financial position at December 31,2023. Assume that all amounts are material and that an income tax rate of 25% is appropriate for all years. Assume also that each item is independent of the other items. You do not need to total the columns on the grid. (Do not leave any answer field blank. Enter O for amounts. Round answers to O decimal places, eg. 5, 125.)