Freda's florist reported the following before-tax income statement items for the year ended december 31, 2018: operating income $ 250,000income on discontinued operations 70,000all income statement items are subject to a 40% income tax rate. in its 2018 income statement, freda's separately stated income tax expense and total income tax expense would be: (a) $100,000 and $100,000, respectively.
(b) $128,000 and $100,000, respectively.
(c) $128,000 and $128,000, respectively.
(d) $100,000 and $128,000, respectively.

Income tax expense

= 40% x $250,000 = $100,000

Total income tax expense

= 40% x ($250,000 +$70,000) = $128,000

The correct answer is D

Explanation:

The income tax expense is calculated on the operating income of $250,000 while the total income tax expense is calculated on the gross income of $320,000. Tax is computed at the rate of 40% of the income respectively.

the definition of a small business is an independently owned and operated company that is limited in size and in revenue depending on the industry. a local bakery that employs 10 people is an example of a small business. a manufacturing facility that employees less than 500 people is an example of a small business.