Howard Co.'s 2016 income from continuing operations before income taxes was $288,000. Howard Co. reported a before-tax income on discontinued operations of $54,000. All tax items are subject to a 38% tax rate. In its income statement for 2016, Howard Co. would show the following line-item amounts for net income and income tax expense:

$212,040 and $109,440.

$109,440 and $212,040.

$342,000 and $308,520.

$234,000 and $267,480.