The before-tax income for Cullumber Co. for 2017 was $109,000 and $80,000 for 2018. However, the accountant noted that the following errors had been made:

1. Sales for 2017 included amounts of $40,400 which had been received in cash during 2017, but for which the related products were delivered in 2018. Title did not pass to the purchaser until 2018.2.The inventory on December 31, 2017, was understated by $8,500.3.The bookkeeper in recording interest expense for both 2017 and 2018 on bonds payable made the following entry on an annual basis.

Interest Expense - 15,000

Cash - 15,000

The bonds have a face value of $250,000 and pay a stated interest rate of 6%. They were issued at a discount of $16,000 on January 1, 2017, to yield an effective-interest rate of 7%. (Assume that the effective-yield method should be used.)

2. Ordinary repairs to equipment had been erroneously charged to the Equipment account during 2017 and 2018. Repairs in the amount of $8,800 in 2017 and $8,600 in 2018 were so charged. The company applies a rate of 10% to the balance in the Equipment account at the end of the year in its determination of depreciation charges.

Prepare a schedule showing the determination of corrected income before taxes for 2017 and 2018.