TYT Company bought a new equipment on 1 January 2015 at $120,000. The equipment has an estimated useful life of 4 years and an estimated residual value of $20,000. The company uses the straight-line depreciation method. The accountants bonus rewards is based on a percentage of the net profit reported. As the accountant is the only employee fully in charge of the accounts and the boss is not accounting-trained, he decided to quietly depreciate the new equipment over a 5-year useful life instead.

In the year 2016, a new storekeeper was employed to handle all the merchandise inventories. During the year-end stock count, a batch of merchandise inventories costing $5,000 was in transit. These inventories were purchased on FOB shipping terms and were not included in the stock count.

During the stock count at the end of 2017, a batch of merchandise inventories costing $10,000 was included in the stock count although it was sold on FOB destination and was scheduled to reach the customers port on 7 January 2018.

Required:

(a) Analyse the above information and indicate on the below table, the direction and amount of misstatement on the listed items. Use an up arrow to indicate overstatement and a down arrow to indicate understatement, e.g. Up$X to indicate an overstatement of $X. For items with no misstatement, indicate it with a tick.

	2015	2016	2017
Net Income
Total long-term assets
Total Assets
Total Equity