Kandy Kane Corporation has income before taxes of $1,200,000 and a discontinued operations gain of $300,000. If the income tax rate is 25% on all items, the income statement should show income from continuing operations and a discontinued operations gain, respectively, of
A) $975,000 and $300,000.
B) $975,000 and $225,000.
C) $900,000 and $300,000.
D) $900,000 and $225,000.
Correct Answer:
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