Several years ago, the financial statements of Gibson Greeting Cards, now part of American Greetings, contained the following note:

On July 1, the Company announced that it had determined that the inventory . . . had been overstated. . . . The overstatement of inventory . . . was $8,806,000. Gibson reported an incorrect net income amount of $25,852,000 for the year in which the error occurred and the income tax rate was 39.3 percent.

Required: 1. Compute the amount of net income that Gibson reported after correcting the inventory error.