At Pharoah Company, events and transactions during 2020 included the following. The tax rate for all items is 30%. (1) Depreciation for 2018 was found to be understated by $148000. (2) A strike by the employees of a supplier resulted in a loss of $124800. (3) The inventory at December 31, 2018 was overstated by $199100. The effect of these events and transactions on 2020 income from continuing operations net of tax would be ($190960). ($87360). ($330330). ($242970). Save for Later