Linden Corporation is preparing its December 31, 2006, financial statements. Two events that oc- curred between December 31, 2006, and March 10, 2007, when the statements were issued, are described below. 1. A liability, estimated at $150,000 at December 31, 2006, was settled on February 26, 2007, at $170,000. 2. A flood loss of $80,000 occurred on March 1, 2007. What effect do these subsequent events have on 2006 net income?