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Ch18, Ch22 13. Yejun Co began operations on January 1, 2017 Financial statements for 2017 and 2018 contained the following errors: Dec 31, 2017 Dec 31, 2018 Ending inventory $200,000 overstated $220,000 understated Depreciation expense 135,000 overstated Insurance expense 60,000 understated 60,000 overstated Prepaid insurance 60,000 overstated In addition, on December 31, 2018 fully depreciated equipment was sold for $50,000, but the sale was not recorded until 2019. Yejun reported net income of $300,000 and 500,000 in 2017 and 2018. No corrections have been made for any of the errors. Ignore income tax considerations What is the correct net income in 2017 and 2018? Ans) 2017: $175,000 / 2018: $1,030,000 Notes 88 In -