The Johnson Corporation had the following items occur throughout the year:

a) An unusual loss from an earthquake costing the company $40,000.

b) A strike that cost the company $10,000.

c) They closed the pencil operations during the year costing them $50,000. The pencil operations had an operating gain in the amount of $2,000 for the current year.

Income from Operations is $900,000. The income tax rate is 5%. Prepare the Income Statement starting with Income from Operations. Ignore Earning per Share for this problem