Several years ago, the financial statements of Montgomery Greeting Cards, now part of Nation Salutations, 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 $8,886,000.

Montgomery Greeting Cards reported an incorrect net income amount of $25,822,000 for the year in which the error occurred and the income tax rate was 36.80 percent.

Required:

1. Compute the amount of net income that Montgomery Greeting Cards reported after correcting the inventory error.