Palomo Corp has a tax rate of 30 percent and income before non-operating items should this be income from operations of $357,000. It also has the following items (gross amounts).

Unusual gain$                                                23,000

Loss from discontinued operations               183,000

Dividend revenue                                          6,000

Income increasing prior

period adjustment                                         74,000

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

a.              $115,800

b.              $  60,900

c.              $  83,100

d.              $108,900