Provincial inc. reported the following before-tax income statement items: operating income $ 600,000loss on discontinued operations 100,000provincial has a 30% income tax rate. provincial would report the following amount of income tax expense as a separately stated line item in the income statement: (a) $180,000.
(b) $198,000.(c) $150,000.(d) $168,000.

You are the manager of a large crude-oil refinery. as part of the refining process, a certain heat exchanger (operated at high temperatures and with abrasive material flowing through it) must be replaced every year. the replacement and downtime cost in the first year is $165 comma 000. this cost is expected to increase due to inflation at a rate of 7% per year for six years (i.e. until the eoy 7), at which time this particular heat exchanger will no longer be needed. if the company's cost of capital is 15% per year, how much could you afford to spend for a higher quality heat exchanger so that these annual replacement and downtime costs could be eliminated?