Itchy Group reported income from continuing operations before taxes of $638,000 and income from discontinued operations of $214,000. Ivy also reported $68,000 of unrealized gains from fair value accounting adjustments recorded as other comprehensive income. The company is subject to a 38% tax rate and reports no permanent differences.

How much income tax expense does Itchy report as a line item directly below "Income from Continuing Operations before Taxes"?

$349,600

$323,760

$268,280

$242,440