五、Mason's Hardware Store prepared the following analysis of cost of goods sold for the previous three years:( 30 % ) Net income for the years 2004, 2005, and 2006 was $70,000, $60,000，and $55,000, respectively. Since net income was consistently declining, Mr. Mason hired a new accountant to investigate the cause(s) for the declines.The accountant determined the following: 1.Purchases of $35,000 were not recorded in 2004.2.The 2004 December 31 inventory should have been $29,000.3.The 2005 ending inventory included inventory costing $8,000 that was purchased FOB destination and in transit at year end.4.The 2006 ending inventory did not include goods costing $4,000 that were shipped on December 29 to Sampson Plumbing Company, FOB shipping point. The goods were still in transit at the end of the year.
a.Determine the correct net income for 2004