Sandhill Inc. reported income from continuing operations before taxes during 2023 of $1,072,800. Additional transactions occurring in 2023 but not considered in the $1,072,800 are as follows. 1. The corporation experienced an uninsured flood loss in the amount of $108,000 during the year. 2. At the beginning of 2021 , the corporation purchased a machine for $64,800 (salvage value of $10,800 ) that had a useful life of 6 years. The bookkeeper used straight-line depreciation for 2021,2022 , and 2023 , but failed to deduct the salvage value in computing the depreciation base. 3. Sale of securities held as a part of its FV-NI portfolio resulted in a loss of $68,400. 4. The corporation disposed of its recreational division at a loss of $138,000 before taxes. Assume that this transaction meets the criteria for discontinued operations. 5. The corporation decided to change its method of inventory pricing from average-cost to the FIFO method. The effect of this change on prior years is to increase 2021 income by $72,000 and decrease 2022 income by $24,000 before taxes. The FIFO method has been used for 2023 . Sandhill Inc. reported income from continuing operations before taxes during 2023 of $1,072,800. Additional transactions occurring in 2023 but not considered in the $1,072,800 are as follows. 1. The corporation experienced an uninsured flood loss in the amount of $108,000 during the year. 2. At the beginning of 2021 , the corporation purchased a machine for $64,800 (salvage value of $10,800 ) that had a useful life of 6 years. The bookkeeper used straight-line depreciation for 2021,2022 , and 2023 , but failed to deduct the salvage value in computing the depreciation base. 3. Sale of securities held as a part of its FV-NI portfolio resulted in a loss of $68,400. 4. The corporation disposed of its recreational division at a loss of $138,000 before taxes. Assume that this transaction meets the criteria for discontinued operations. 5. The corporation decided to change its method of inventory pricing from average-cost to the FIFO method. The effect of this change on prior years is to increase 2021 income by $72,000 and decrease 2022 income by $24,000 before taxes. The FIFO method has been used for 2023