Apparel Inc.'s 2021 income from continuing operations before income taxes was $298,000. Apparel Inc. reported before-tax income on discontinued operations of $74,000. All tax items are subject to a 25% tax rate. In its income statement for 2021, Apparel Inc. would show the following line-item amounts for income tax expense and net income:

Multiple Choice

• $279,000 and $74,500 respectively.

• $224,000 and $279,500 respectively.

• $372,000 and $316,500 respectively.

• $74,500 and $279,000 respectively.