The before-tax income for Lonnie Holdiman Co. for 2014 was $104,000 and $77,000 for 2015. However, the accountant noted that the following errors had been made:

1.		Sales for 2014 included amounts of $35,100 which had been received in cash during 2014, but for which the related products were delivered in 2015. Title did not pass to the purchaser until 2015.
2.		The inventory on December 31, 2014, was understated by $8,900.
3.		The bookkeeper in recording interest expense for both 2014 and 2015 on bonds payable made the following entry on an annual basis.

Interest Expense	12,700
Cash		12,700

The bonds have a face value of $254,000 and pay a stated interest rate of 5%. They were issued at a discount of $12,527 on January 1, 2014, to yield an effective-interest rate of 6%. (Assume that the effective-yield method should be used.)

4.

Ordinary repairs to equipment had been erroneously charged to the Equipment account during 2014 and 2015. Repairs in the amount of $8,000 in 2014 and $9,300 in 2015 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 2014 and 2015.