The accountant preparing the income statement for Bakersfield, Inc. had some doubts about the appropriate accounting treatment of the four items listed below during the fiscal year ending December 31, 2020. Assume a tax rate of 20 percent.

1. Office equipment purchased January 1, 2020 for $60,000 was incorrectly charged to Supplies Expense at the time of purchase. The office equipment has an estimated three-year service life with no expected salvage value. Bakersfield uses the straight-line method to depreciate office equipment for financial reporting purposes. This error has not been recorded.

2. The corporation disposed of its sporting goods division during 2020. This disposal meets the criteria for discontinued operations. The division correctly calculated income from operating this division of $110,000 before taxes and a loss of $20,000 before taxes on the disposal of the division. All of these events occurred in 2020 and have not been recorded.

3. Dividends of $10,000 during 2020 were recorded as an operating expense.

4. On January 1, 2016, Bakersfield bought a building that cost $85,000, had an estimated useful life of ten years, and had a salvage value of $5,000. Bakersfield uses the straight-line depreciation method to depreciate the building. In 2020, it was estimated that the remaining useful life was eight years and the salvage value was zero. Depreciation expense reported on the 2020 income statement was correctly calculated based on the new estimates. No adjustment for prior years' depreciation estimates was made.

Assume that income from continuing operations (before taxes) and after correctly considering any of the four additional items was $1,600,000. Prepare the income statement starting from income from continuing operations (before taxes).