Q42: Fairfax Inc. began operations on January 1, 2016. Financial statements for 2016 and 2017 contained the following errors: Dec. 31, 2017 S39,000 too low Dec. 31, 2016 S33,000 too high 21,000 too high 15,000 too low 15,000 too high Ending inventory Depreciation expense Insurance expense Prepaid insurance 15,000 too high In addition, on December 31, 2017 fully depreciated equipment was sold for $7,200, but the sale was not recorded until 2018. No corrections have been made for any of the errors. Ignore income tax considerations. The total effect of the errors on Fairfax's 2017 net income is Q24: Malcolm Corp.'s statements of financial position at December 31, 2017 and 2016 and information relating to 2017 activities are presented below: December 31, 2017 2016 Assets Cash $ 50,000 S 110,000 Temporary investments Accounts receivable (net) 150,000 255,000 345.000 100,000 850,000 (225,000) 45,000 $1.630.000 255,000 300,000 150,000 500,000 (225,000) 50,000 $1.080.000 Inventory Long-tem investments Property, plant and equipment Accumulated depreciation Goodwill Total assets Liabilities and Shareholders' Equity Accounts payable Long-term note payable S 360,000 $ 415,000 145,000 600,000 470,000 $1.630.000 475,000 245,000 S1.080.000 Common shares Retained earnings Total liabilities and shareholders' equity Other information relating to 2017 activities: 1. Net income was S375.000. Cash dividends of $150,000 were declared and paid. Equipment costing $250,000, with a book value of S80,000, was sold for 2. 3. $90,000. A long-term investment was sold for S80,000. There were no other 4. transactions affecting long-term investments. 5,000 common shares were issued for $25 a share. Temporary investments consist of treasury bills maturing on June 30, 2018. 5. 6. The cash used in investing activities in 2017 was