At Hall Company, events and transactions during 2018 included the following. The tax rate for all items is 30%. (1) Depreciation for 2016 was found to be understated by $30,000. (2) A strike by the employees of a supplier resulted in a loss of $25,000. (3) The inventory at December 31, 2016 was overstated by $40,000. (4) A flood destroyed a building that had a book value of $500,000. Floods are very uncommon in that area. Reference: Ref 4-1 The effect of these events and transactions on 2018 net income net of tax would be