Problem: Freda's Florist reported the following before-tax income statement items for the year ended December 31, 2011:
Operating income $250,000
Extraordinary gain 70,000
All income statement items are subject to a 40% income tax rate. In its 2011 income statement, Freda's separately stated income tax expense and total income tax expense would be:
a $128,000 and $128,000, respectively.
b $128,000 and $100,000, respectively.
c $100,000 and $128,000, respectively.
d $100,000 and $100,000, respectively.