TJMusk Inc. reported the following before-tax income statement items: Operating income $700,000, Nonoperating losses $100,000. TJMusk has a 25% income tax rate. TJMusk would report the following amount of income tax expense as a separately stated line item in the income statement:
a. $200,000.
b. $160,000.
c. $150,000.
d. $175,000.