Sideline Company reported net income for 2013 of $70,000 and in 2014 of $84,000 (both after income taxes at a 30% rate). It was discovered in 2014 that the ending inventory for 2013 was understated by $2,000 (before any income tax effect).
Required:
Calculate the correct net income (after income tax of 30%) for 2013 and 2014

Question

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The Answer of Sideline Company reported net income for 2013 of $70,000 and in 2014 of $84,000 (both after income taxes at a 30% rate). It was discovered in 2014 that the ending inventory for 2013 was understated by $2,000 (before any income tax effect).
Required:
Calculate the correct net income (after income tax of 30%) for 2013 and 2014

Sideline Company Reported Net Income for 2013 of $70,000 and in 2014