Question - Randall Co. began operations on January 1, 2015. Financial statements for 2015 and 2016 contained the following errors:

                                             Dec. 31, 2015                  Dec. 31, 2016          

Ending inventory                     $90,000 too high              $114,000 too high

Depreciation expense              48,000 too low                 -

Accumulated depreciation        48,000 too low                 48,000 too low

Insurance expense                  42,000 too high               42,000 too low

Prepaid insurance                    36,000 too low

In addition, on December 26, 2016 fully depreciated equipment was sold for $58,000, but the sale was not recorded until 2017. No corrections have been made for any of the errors.

Instructions - Ignoring income taxes, show your calculation of the total effect of the errors on 2016 net income.