Howard Co'S 2009 Income from Continuing Operations Before Income Taxes Was

question 25

Multiple Choice

Howard Co.'s 2009 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 2009, 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.