Pepper Company, discovered the following events and transactions during 2020. Their tax rate is 20%. (1) Depreciation for 2018 was found to be understated by $120,000. (2) A strike in 2020 by the employees of a supplier resulted in a loss of $100,000 due to supply chain disruptions (3) The inventory at December 31, 2018 was overstated by $160,000. (4) A disposal of a component of the business in 2020 resulted in a $2,000,000 loss. The effect of these events and transactions on 2020 net income net of tax would be ($1,904,000) ($47,000) ($1,680,000). ($1,776,000). 116