Condensed income statements for Ken-Du Company for two years are shown below. 

After the end of 2010, the company discovered that an error had resulted in a $36,000 understatement of the 2009 ending inventory. 

Compute the corrected income before income taxes for 2009 and 2010. What effect will the error have on income before income taxes and stockholders’ equity for 2011?

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2010 2009 Sales Cost of goods sold Gross margin Operating expenses Income before income taxes $504,000 $420,000 216,000 300,000 $204,000 120,000 $204,000 120,000 $ 84,000 $ 84,000