Required information [The following information applies to the questions displayed below.) Innerspace Incorporated produces drones. The company uses variable costing for internal management reports and absorption costing for external reports to shareholders, creditors, and the government. The company has provided the following data: Year 1 Year 2 Year 3 Inventories Beginning (units) Ending (units) Variable costing net operating income 160 200 160 $300,000 200 200 230 $260,000 $279 , The company's fixed manufacturing overhead per unit was constant at $500 for all three years. The company's fixed manufacturing overhead per unit was constant at $500 for all three years. Required: 1. Calculate each year's absorption costing net operating income (Enter any losses or deductions as a negative value.) Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Year 1 Year 2 Year 3 Variable costing net operating income Add (deduct) fixed manufacturing overhead deferred in (released from) inventory under absorption costing Absorption costing net operating income