Goofy Company Reported Profit for 20X1 of $30,000, and in 20X2

Short Answer

Goofy Company reported profit for 20X1 of $30,000, and in 20X2 $40,000 (both after income taxes at a 20% rate). It was discovered in 20X3 that the ending inventory for 20X1 was overstated by 8,000 (before any income tax effect). The correct profit (after income tax of 20%) should be: 20X1 $_______________________ 20X2 $_______________________