The Candy Stick Corporation has income before taxes of ($ 400,000) and an extraordinary loss of ($

Question:

The Candy Stick Corporation has income before taxes of $\$ 400,000$ and an extraordinary loss of $\$ 100,000$. If the income tax rate is $25 \%$ on all items, the income statement should show income before extraordinary items and extraordinary items, respectively, of

a. $\$ 325,000$ and $\$ 100,000$.

b. $\$ 325,000$ and $\$ 75,000$.

c. $\$ 300,000$ and $\$ 100,000$.

d. $\$ 300,000$ and $\$ 75,000$.

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