3. At Warren Company, events and transactions during 2021 included the following. The tax rate for all items is 21%. (1) Depreciation for 2018 was found to be understated by $240,000. A strike by the employees of a supplier resulted in a loss of $200,000. (2) The inventory at December 31, 2018 was overstated by $320,000. (3) (4) A disposal of a component of the business resulted in a $4,000,000 loss. Instructions: Calculate the effect of these events and transactions on 2021 net income net of tax. (By how much would net income increase or decrease?)