Major Co. reported 2018 income of $314,000 from continuing operations before income taxes and a before-tax loss on discontinued operations of $75,000. All income is subject to a 30% tax rate. In the income statement for the year ended December 31, 2018, Major Co. would show the following line-item amounts for income tax expense and net income:

Multiple Choice

• $71,700 and $389,000 respectively.

• $94,200 and $239,000 respectively.

• $94,200 and $167,300 respectively.

• $71,700 and $219,800 respectively.