on the income statements for the previous years is as follows. 3. In 2026, the auditor discovered that: a. The company incorrectly overstated the ending inventory (under both LIFO and FIFO) by $15,000 in 2025 . b. A dispute developed in 2024 with the Intemal Revenue Service over the deductibility of entertainment expenses. In 2023, the company was not permitted these deductions, but a tax settlement was reached in 2026 that allowed these expenses, As a result of the court's finding, tax expenses in 2026 were reduced by $59,000. (b) Present net income as reported in comparative income statements for the years 2023 to 2026. (Enter amounts that decrease net income using either a negative sign preceding the number es 15,000 or parentheses es (15,000). (b) Present net income as reported in comparative income statements for the years 2023 to 2026 . (Enter amounts that decreose net income using either a negative sign preceding the number eg 15,000 or parentheses eg. (15,000) ) (b) Present net income as reported in comparative income statements for the years 2023 to 2026 . (Enter dmounts thot decreose net income using either a ncgativesten preceding the numbereg, 15,000 or parentheses es: (15,000). Flint Inc was organized in late 2023 to manufacture and sell hosiery. At the end of its fourth year of operation, the company has been faifly sticeessfut, as indicated by the followirg reported net incomes. "Includes a $11,000 increase because of change in bad debt experience rate. bincludes a gain of $30.000. The compary has decided to expand operations and has applied for a sizable bank loan. The bank officer has indicated that the records stould be audited and presented in comparative statements to facilitate analysis by the bank. Flint linc, therefore hired the auditing firm of Check \&. Doublecheck Ca. and has provided the following additional information. 1. In early 2024, Flint inc, changed its estimate from 2% of receivables to 1% on the amount of bad debt expense to be charged to operations. Bad debt expense for 2023, if a 1\% rate had been used, would have been $11.000. The congany therefore restated its net income for 2023 . 2. In 2026. the auditoe discovered that the company had changed its method of inventory pricing from UFO to FFO. The alfect on the income statements for the previous years is as foliows