The Mike Tomlin Company has a calendar$$year accounting period. The following error was discovered in April of $2019.$ This error would have affected the financial statements for $2017$ and $2018.$

The ending balance in the inventory had been overstated at $12/31/2017$ by $$100,000.$

INSTRUCTIONS:

Compute the effect this error had on the $2017$ net income.

Compute the effect, if any, each error had on the December $31,2017$ balance sheet items.

Hint: be very careful about the time period!