At Pharoah Company, 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 $120700. (2) A strike by the employees of a supplier resulted in a loss of $94800. (3) The inventory at December 31, 2018 was overstated by $157300. (4) A disposal of a component of the business resulted in a $1988000 loss. The effect of these events and transactions on 2020 net income net of tax would be

($1666240).

($1888640).

($76340).

($1744400).