Stomp Ltd. (Stomp) reports under ASPE standards. During this fiscal year, the senior management of Stomp decided to discontinue a major line of business and dispose of the associated asset group. Immediately prior to the end of the fiscal year, the assets of the discontinued business line were sold for a gain of $100,000. Net income before taxes for Stomp for the fiscal year in question totalled $1,300,000, of which $150,000 related to operations of the discontinued line of business (revenues of $575,000 less expenses of $425,000). Stomps tax rate is 16%. Which of the following income statement excerpts appropriately presents the above facts?

A.

Income from continuing operations	$1,150,000
Income from discontinued operations	150,000
Income tax expense	(208,000)
Net income	$1,092,000

B.

Income from continuing operations before taxes	$1,150,000
Income tax expense	208,000
Net income from continuing operations	942,000
Income from discontinued operations	150,000
Net income	$1,092,000

C.

Income from continuing operations before taxes	$1,050,000
Income tax expense	168,000
Net income from continuing operations	882,000
Income from discontinued operations (after tax)	126,000
Gain on sale of assets (after tax)	84,000
Net income	$1,092,000

D. Income from continuing operations before taxes$1,050,000

Income tax expense 168,000

Net income from continuing operations 882,000

Income from discontinued operations before taxes 250,000

Income tax expense on discontinued operations (40,000)

Net income $1,092,000