Where does the 0.70 come from? Please show all steps to completing the problem.

Sideline Company reported net income for 2021 of $70,000 and in 2022 of $84,000 (both after income taxes at a 30% rate). It was discovered in 2022 that the ending inventory for 2021 was understated by $2,000 (before any income tax effect). Required: Calculate the correct net income (after income tax of 30\%) for 2021 and 2022. Explanation 2021:$70,000+($2,0000.70)=$71,400;2022:$84,000($2,0000.70)=$82,600