At Yousef Company, events and transactions during 2019 included the following. The tax rate for all items is 30%. (1) Depreciation for 2018 was found to be understated by $45,000. (2) A disposal of equipment resulted in a loss of $35,000. (3) The inventory at December 31, 2018 was overstated by $60,000. (4) The company disposed of its recreational division at a loss of $750,000. (5) Unrealized holding gain from trading investment of $350,000. The effect of these events and transactions on 2019 net income is: