Kreig Corporation has income before taxes of $900,000 and an extraordinary gain of $300,000. If the income tax rate is 35% on all items, the income statement should show income before irregular items and extraordinary items, respectively, of

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Income before irregular items and extraordinary items is $585,000 ($900,000 - $300,000 * 35%). Income before extraordinary items is $195,000 ($585,000 - $300,000).

Kreig Corporation Has Income Before Taxes of $900,000 and an Extraordinary