R. Stone Corporation has income before taxes of $780,000 and an extraordinary gain of $200,000. If the income tax rate is 25% on all items, the income statement should show income before irregular items and extraordinary items, respectively, of
A) $635,000 and $200,000.
B) $635,000 and $150,000.
C) $585,000 and $200,000.
D) $585,000 and $150,000.
Correct Answer:
Verified
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