At Ruth Company, events and transactions during 2012 included the following. The tax rate for all items is 30%. Depreciation for 2010 was found to be understated by $60,000. A strike by the employees of a supplier resulted in a loss of $50,000. The inventory at December 31, 2010 was overstated by $80,000.A flood destroyed a building that had a book value of $1,000,000. Floods are very uncommon in that area.The effect of these events and transactions on 2012 net income net of tax would be Answer ($735,000). ($833,000). ($35,000). ($777,000).