During the year 2018, Tosco Corporation suffered an $400,000 loss when its factory was destroyed in a flood. Assuming the corporate income tax rate is 20%, what amount will Tosco report as a non-recurring loss on its income statement for 2018? Assume floods are not common in this area.

rev: 07_04_2018_QC_CS-130717, rev: 11_21_2018_QC_CS-143121

• $80,000

• $320,000

• $400,000

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