The before$-$tax income for Sandhill Co$.$ for $2025$ was $$107,000$ and $$83,900$ for $2026.$ However, the accountant noted that the

following errors had been made:

Sales for $2025$ included amounts of $$35,400$ which had been received in cash during $2025,$ but for which the related products

were delivered in $2026.$ Title did not pass to the purchaser until $2026.$

The inventory on December $31,2025,$ was understated by $$9,300.$

The bookkeeper in recording interest expense for both $2025$ and $2026$ on bonds payable made the following entry on an

annual basis.

Interest Expense $,15,000$

Cash

$15,000$

The bonds have a face value of $$250,000$ and pay a stated interest rate of $6\%.$ They were issued at a discount of $$17,000$ on

January $1,2025,$ to yield an effective$-$interest rate of $7\%.($Assume that the effective$-$interest method should be used.$)$

Ordinary repairs to equipment had been erroneously charged to the Equipment account during $2025$ and $2026.$ Repairs in the

amount of $$8,600$ in $2025$ and $$9,700$ in $2026$ were so charged. The company applies a rate of $10\%$ to the balance in the

Equipment account at the end of the year in its determination of depreciation charges.

Prepare a schedule showing the determination of corrected income before taxes for $2025$ and $2026.($Enter negative amounts using

either a negative sign preceding the number e$.$g$.-15,000$ or parentheses e$.$g$.(15,000).$ Round answers to $0$ decimal places, e$.$g$.125.)$

Corrections:

Adjustment to Bond Interest Expense

Adjustment to Bond Interest Payable

Depreciation Not Recorded on Capitalized Repairs

Depreciation Recorded on Improperly Capitalized Repairs

Overstatement of $2025$ Ending Inventory

Repairs Erroneously Charged to the Equipment Account

Repairs Not Charged to Equipment Account

Sales Erroneously Excluded in $2025$ Income

Sales Erroneously Included in $2025$ Income

Understatement of $2025$ Ending Inventory