Memorax Company earned before-tax income of $850,000 for its 2013 fiscal year. During the year the company experienced a $550,000 loss from earthquake damage that it considered to be an extraordinary item. This loss is not included in the $850,000 before-tax income figure. The company's income tax rate is 40%.
Prepare the lower portion of the 2013 income statement beginning with $850,000. (Amounts to be deducted should be indicated with a minus sign.)