Midway Co. had the following transactions during 2010:

• $1,200,000 pretax loss on foreign currency exchange due to a major unexpected devaluation by the foreign government.

• $500,000 pretax loss from discontinued operations of a division.

• $800,000 pretax loss on equipment damaged by a hurricane.

This was the first hurricane ever to strike in Midway’s area. Midway also received $1,000,000 from its insurance company to replace a building, with a carrying value of $300,000, that had been destroyed by the hurricane.

What amount should Midway report in its 2010 income statement as extraordinary loss before income taxes?

a. $ 100,000

b. $1,300,000

c. $1,800,000

d. $2,500,000