An inexperienced accountant for Barlay Corporation showed the following in Barlay’s 2007 income statement: Income before income taxes $300,000; Income tax expense

$48,000; Extraordinary loss from flood (before taxes) $60,000; and Net income

$192,000. The extraordinary loss and taxable income are both subject to a 20% tax rate.

Prepare a corrected income statement beginning with “Income before income taxes.”