Major Co. reported 2021 income of $313,000 from continuing operations before income taxes and a before-tax loss on discontinued operations of $70,000. All income is subject to a 25% tax rate. In the income statement for the year ended December 31, 2021, Major Co. would show the following line-item amounts for income tax expense and net income:

Multiple Choice

• $60,750 and $234,750 respectively.
• $60,750 and $383,000 respectively.
• $78,250 and $243,000 respectively.
• $78,250 and $182,250 respectively.