Lopez Corporation has a tax rate of 20 percent and income before non-operating items of $1,392,000. It also has the following items (gross amounts).

Unusual loss $222,000

Loss from discontinued operations (net of taxes) $606,000

Gain on disposal of equipment $48,000

Change in accounting principle increasing prior year's income $318,000

What is the amount of income tax expense Lopez Corporation would report on its income statement?

Select one:

a. $278,400

b. $186,000

c. $243,600

d. $297,600