Camel Inc. has 100,000 shares of common stock outstanding. You were told that the company had pretax income from continuing operations of $1,400,000 for fiscal year 2017. But you realized that the following additional items were not included in this amount.

1. In 2017, Camel sold equipment for $40,000. The machine had a book value of $44,000 (originally cost $80,000 and accumulated depreciation $36,000). The company often sells equipment that it has used in its operations.

2. An earthquake rocked the plant in Kansas causing damage of $100,000.

3. The company wrote down obsolete inventory and incurred a loss of $65,000.

4. The company has two components, a yoga props division and household appliances division. These divisions have distinguishable operations. In 2017, Camel decided to sell its household appliances division. The division sold for $500,000 and the book value of its assets was $750,000. The 2017 income from operating the division was $120,000.

5. The tax rate for 2017 is 40%.