Howard Co.'s 2013 income from continuing operations before income taxes was $300,000. Howard Co. reported a before-tax extraordinary gain of $55,000. 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) $245,000 and $278,000.
b) $355,000 and $322,000.
c) $213,000 and $120,000.
d) $120,000 and $213,000.