Fitch Corporation reported net income from continuing operations before tax for 2018 of $685,000 before the following adjustments

• The company recorded a gain on the sale of investments of $28,000 this year
• Fitch discontinue the Emma Division this year. The Emma division reported a loss on operations of $56,000 before tax and a realized gain on the sale of assets of $23,000 before tax. It is anticipated that the remaining assets will be sold at a loss of $35,000 before tax next year.
• Alex Fitch the companys VP passed away this year. Fitch Company received a $200,000 check from the life insurance company in settlement of the claim made on the company owned policy. This policy had a cash surrender value of $69,000 on the books. Any gain will not be taxed.
• One of the companys warehouses was located in Florida and was destroyed by a hurricane in 2018. The insurance proceeds were $200,000. The warehouse was on the books at a cost of $375,000 with $160,000 of accumulated depreciation.
• The Company discovered that the inventory at December 31, 2017 was understated by $50,000.
• The company is in the 25% tax bracket.

Required:

Using this information prepare a partial income statement beginning with net income from continuing operations before tax for the year ended December 31, 2018. Hint: First look at the adjustments above and determine the correct amount of Net Income from Continuing Operations as some but not all of the adjustments belong there.