64-Larkspur, Inc. disposes of an unprofitable segment of its business. The operation of the segment suffered a $224000 loss in the year of disposal. The loss on disposal of the segment was $124000. If the tax rate is 31%, and income before income taxes was $1624000,

net income is $1276000.

the losses from discontinued operations are reported net of income taxes at $348000.

the income tax expense on the income before discontinued operations is $455880.

the income from continuing operations is $1120560.