Howard Co.'s 2013 income from continuing operations before income taxes was $280,000. Howard Co. reported a before-tax extraordinary gain of $50,000. All tax items are subject to a 40% tax rate. In its income statement for 2013, Howard Co. would show the following line-item amounts for net income and income tax expense:
A)$198,000 and $112,000.
B)$230,000 and $92,000.
C)$330,000 and $132,000.
D)$198,000 and $79,000.

Question

Quizplus · Accepted Answer

Net income = $280,000 + $50,000 - $112,000 = $198,000Income tax expense = $112,000

Howard Co'S 2013 Income from Continuing Operations Before Income Taxes Was