Howard Co.'s 2016 income from continuing operations before income taxes was $285,000. Howard Co. reported a before-tax income on discontinued operations of $51,000. All tax items are subject to a 40% tax rate. In its income statement for 2016, Howard Co. would show the following line-item amounts for net income and income tax expense:

$201,600 and $114,000.

$336,000 and $305,400.

$234,000 and $264,600.

$114,000 and $201,600.