During the year 2018, Torino Corporation suffered a $1,150,000 loss when its factory was severely damaged in an earthquake. Assuming the corporate income tax rate is 30%, what amount will Torino report as a non-recurring loss on its income statement for 2018? Assume earthquakes are not common in this area.

• Nothing, since this does not qualify as a non-recurring item.

• $345,000

• $805,000

• $1,150,000