Palomo Corp has a tax rate of 20 percent and income before non-operating items of $1,784,800. It also has the following items (gross amounts):
Unusual gain : $115,000
Loss from discontinued operations: $915,000
Dividend revenue: $30,000
Income-increasing prior period adjustment : $370,000, respectively.
What is the amount of income tax expense Palomo would report on its income statement?
a) $277,000
b) $203,000
c) $363,000
d) $386,000