Trayer Corporation has income from continuing operations of $298,000 for the year ended December 31, 2017. It also has the following items (before considering income taxes).
1. An unrealized loss of $77,000 on available-for-sale securities
2. A gain of $25,000 on the discontinuance of a division (comprised of a $18,000 loss from operations and a $43,000 gain on disposal).
3. A correction of an error in last year's financial statements that resulted in a $15,000 understatement of 2016 net income.
Assume all items are subject to income taxes at a 21% tax rate.