Mission Flowers Company had the following transactions for the year ended December 31: Sales revenues of $ 775,000.
• Operating expenses of $ 550,000.
• Losses due to employee strike of $ 200,000. This was the first employee strike in the history of the company. Operating income of $ 100,000 from a subsidiary sold on November 1. The decision to dispose was made on February 28. The income was earned evenly over the ten months ended October 31.
• The company’s effective tax rate is 35%. What amount should Mission Flowers report as income from continuing operations for the year ended December 31?
a. $ 33,750
b. $ 16,250
c. $ 81,250
d. $ 146,250