Sideline Company reported net income for 2010 of $70,000 and in 2011 of $84,000 (both after income taxes at a 30% rate).It was discovered in 2011 that the ending inventory for 2010 was understated by $2,000 (before any income tax effect).Calculate the correct net income (after income tax of 20%)for 2009 and 2010.

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The Answer of Sideline Company reported net income for 2010 of $70,000 and in 2011 of $84,000 (both after income taxes at a 30% rate).It was discovered in 2011 that the ending inventory for 2010 was understated by $2,000 (before any income tax effect).Calculate the correct net income (after income tax of 20%)for 2009 and 2010.

Sideline Company Reported Net Income for 2010 of $70,000 and in 2011