At Hall Company, Events and Transactions During 2008 Included the Following

At Hall Company, events and transactions during 2008 included the following. The tax rate for all items is 30%.
(1) Depreciation for 2006 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, 2006 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.
-The effect of these events and transactions on 2008 net income net of tax would be

A) $17,500.
B) $367,500.
C) $388,500.
D) $416,500.