For Pear Limited, events and transactions during 2018-2020 included the following. The tax rate for all items is 30%. 1. Depreciation for 2019 was found to be understated by $30,000. 2. A 2020 strike by the employees of a supplier resulted in a loss of $20,000. 3. The inventory at December 31, 2018 was overstated by $40,000. 4. A 2020 flood destroyed a building that had a book value of $400,000. Floods are very uncommon in that area. The effect of these events and transactions on 2020 income from continuing operations net of tax would be $14,000 loss $35,000 loss. $63,000 loss. $294,000 loss. none of the above