organized in late $2023$ to manufacture and sell hosiery. At the end of its fourth year of operation, the company has been fairly successful, as indicated by the following reported net incomes.

$\backslash$table$[[2023,$$$140,{000}^a,2025,$$$207,000.],[2024,160,{000}^b,2026,278,000]]$

a Includes a $$10,000$ increase because of change in bad debt experience rate.

The company has decided to expand operations and has applied for a sizable bank loan. The bank officer has indicated that the records should be audited and presented in comparative statements to facilitate analysis by the bank. Stellar Inc. therefore hired the auditing firm of Check & Doublecheck Co$.$ and has provided the following additional information.

In early $2024,$ Stellar 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 $$10,000.$ The company therefore restated its net income for $2023.$

In $2026,$ the auditor discovered that the company had changed its method of inventory pricing from LIFO to FIFO. The effect on the income statements for the previous years is as follows.

$\backslash$table$[[,2023,2024,2025,2026],[$Net income unadjusted$-$LIFO basis,$$140,000,$$$160,000,$$$207,000,$$$278,000$

$($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 e$.$g$.-15,000$ or parentheses e$.$g$.(15,000).)$

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$($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 e$.$g$.-15,000$ or parentheses e$.$g$.(15,000).)$

STELLAR INC.

Comparative Income Statements

For the Years $2023$ through $2026$

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Using multiple attempts will impact your score. $10\%$ score reduction after attempt $1$