(TCO C) At Red Company, events and transactions during 20X2 included the following. The tax rate for all items is 30%. (1) Depreciation for 20X1 was found to be understated by $40,000. (2) A strike by the employees of a supplier resulted in a loss of $35,000. (3) The inventory at December 31, 20X1 was overstated by $50,000. (4) A flood destroyed a building that had a book value of $500,000. Floods are very uncommon in that area. What would the effect of these events and transactions on 20X2 income from continuing operations net of tax be?