The income statement for Pruitt Company summarized for a four-year period shows the following:

				2014	2015	2016	2017
Sales revenue				2,025,000	2,450,000	2,700,000	2,975,000
Cost of goods sold				1,505,000	1,627,000	1,782,000	2,113,000
Gross profit				520,000	823,000	918,000	862,000
Expenses				490,000	513,000	538,000	542,000
Pretax income				30,000	310,000	380,000	320,000
Income tax expense (30%)				9,000	93,000	114,000	96,000
Net income				21,000	217,000	266,000	224,000
An audit revealed that in determining these amounts, the ending inventory for 2015 was overstated by $18,000. The company uses a periodic inventory system.
Required:
1. Recast the income statements to reflect the correct amounts, taking into consideration the inventory error.
2. Compute the gross profit percentage for each year (a) before the correction and (b) after the correction.
3. What effect would the error have had on the income tax expense assuming a 30 percent average rate?