Saved Help Save & Exit Submit Check my work E7-18 Analyzing the Effect of an Inventory Error Disclosed in an Actual Note to a Financial Statement LO7-7 Several years ago, the financial statements of Montgomery Greeting Cards, now part of Nation Salutations, contained the following note: On July 1, the Company announced that it had determined that the inventory... had been overstated.... The overstatement of inventory... was $8,886,000. Montgomery Greeting Cards reported an incorrect net income amount of $25,832,000 for the year in which the error occurred and the income tax rate was 40.70 percent. Required: 1. Compute the amount of net income that Montgomery Greeting Cards reported after correcting the inventory error. Corrected net income