1) Depreciation for 2008 was found to be understated by $30,000. (2) A strike by the employees of a supplier resulted in a loss of $25,000.

1) Depreciation for 2008 was found to be understated by $30,000.(2) A strike by the employees of a supplier resulted in a loss of $25,000.(3) The inventory at December 31, 2008 was overstated by $40,000.(4) A flood destroyed a building that had a book value of $500,000. Floods are very uncommon in that area.The effect of these events and transactions on 2010 income from continuing operations net of tax would be: