PLEASE EXPLAIN ANSWER

Current Attempt in Progress At Wildhorse Co., events and transactions during 2020 included the following. The tax rate for all items is 20%. (1) Depreciation for 2018 was found to be understated by $149500. (2) A strike by the employees of a supplier resulted in a loss of $125600. (3) The inventory at December 31, 2018 was overstated by $200600. The effect of these events and transactions on 2020 income from continuing operations net of tax would be O ($220080). ($100480). O ($280080). O ($380560)