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Freda's Florist reported the following before-tax income ...

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.

Solution Summary

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:

$2.19