P6-29A Toy World began January with an inventory of 20 crates of toys that cost a total of $1,100. During the month, Toy World purchased and sold mer- chandise on account as follows: Purchase 1 30 crates @ $65 Purchase 2 70 crates @ $70 Sale 1 40 crates @ sale price Sale 2 75 crates @ sale price of $100 of $110 Toy World uses the LIFO method. continued... Merchandise Inventory 339 Requirements 1. Show corrected income statements for the three years. (pp. 326327) 2. State whether each year's net income-before your correctionsis understated or overstated. For each incorrect figure, indicate the amount of the understatement or overstatement. (pp. 326327)