At Carla Vista Co., events and transactions during 2020 included the following. The tax rate for all items is 20%.

(1) Depreciation for 2018 was found to be understated by $118600.

(2) A strike by the employees of a supplier resulted in a loss of $107300.

(3) The inventory at December 31, 2018 was overstated by $166700.

(4) A disposal of a component of the business resulted in a $2002000 loss.

The effect of these events and transactions on 2020 net income net of tax would be

a. ($1687440).

b. ($1915680).

c. ($1755600).

d. ($86340).