For the year just ended, Fellups, Inc., had income before income taxes of $275,000 from its normal, recurring operations. In addition, during the year, a tornado damaged one of the companys warehouses and its contents. Tornado damage is quite rare in Fellupss location. The estimated amount of the loss from the tornado is $100,000. The tax rate on all of the above is 40 percent.

Prepare the final section of Fellupss income statement, beginning with income before income taxes.