During the year 2018, Torino Corporation suffered a $1,160,000 loss when its factory was severely damaged in an earthquake. Assuming the corporate income tax rate is 40%, 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.

$696,000

$464,000

$1,160,000