Far Corporation had the following transactions during the quarter ended March 31, 2011:

Loss on early extinguishment of debt

$ 70,000

Payment of fire insurance premium for calendar year 2011

100,000

What amount should be included in Far’s income statement for the quarter ended March 31, 2011?

Extraordinary Loss

Insurance Expense

a

$70,000

$100,000

b

$70,000

$ 25,000

c

$17,500

$ 25,000

d

0

$100,000