Lee Company reported the following net income amounts: Year 1, $70,000; Year 2, $58,000; and Year 3, $53,000. In Year 4, the company discovered errors that had been made in computing the ending inventories for Year 1 and Year 2, as follows:

Compute the correct net incomes for Year 1, Year 2, and Year 3.

Question

Lee Company reported the following net income amounts: Year 1, $70,000; Year 2, $58,000; and Year 3, $53,000. In Year 4, the company discovered errors that had been made in computing the ending inventories for Year 1 and Year 2, as follows: 
 
Compute the correct net incomes for Year 1, Year 2, and Year 3.

Quizplus · Accepted Answer

The Answer of Lee Company reported the following net income amounts: Year 1, $70,000; Year 2, $58,000; and Year 3, $53,000. In Year 4, the company discovered errors that had been made in computing the ending inventories for Year 1 and Year 2, as follows: 
 
Compute the correct net incomes for Year 1, Year 2, and Year 3.

Lee Company Reported the Following Net Income Amounts: Year 1