Start Income statement from continuing operations before taxes which is790,000. Not considered in the 790,000 is gain from policy64,000,Loss of (57,000)(sale) flood loss(43,200)loss on disposal 80,500 change in accounting principle credit 16,000,Correction on depreciation(54,000-9000/6=$7,... book keeper used straight line depreciation but failed to deduct salvage value in 2002,2003,2004.
I answer most of the questions but had a problem setting up statement and starting with continuing operationsbefore taxes.