Sideline Company Reported Net Income for 2018 of $70,000 and in 2019

question 42

Essay

Sideline Company reported net income for 2018 of $70,000 and in 2019 of $84,000 (both after income taxes at a 30% rate).It was discovered in 2019 that the ending inventory for 2018 was understated by $2,000 (before any income tax effect).
Calculate the correct net income (after income tax of 30%)for 2018 and 2019.

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Definitions:

Face-To-Face Interaction

Direct, in-person communication between individuals, allowing for non-verbal cues and immediate feedback.

Solidarity Theory

A concept in social sciences that emphasizes unity and agreement among individuals or groups, supporting each other to achieve common goals.

Relative Deprivation Theory

A sociological theory that posits individuals or groups will feel deprived and likely to seek social change when they compare themselves to others who are better off.

National Industrial Recovery Act

A 1933 U.S. law aimed at boosting economic recovery during the Great Depression through industrial codes of fair practice and stimulating jobs creation.