During the year 2018, Tosco Corporation suffered a $520,000 loss when its factory was destroyed in a flood. Assuming the corporate income tax rate is 32%, what amount will Tosco report as a non-recurring loss on its income statement for 2018? Assume floods are not common in this area.

1.) $520,000

2.) $353,600

3.) $166,400

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