css problem with font-size and <img>

HTML

<p><b>Image causing parent to add space for font-size (in webkit/Safari)</b><br>...uncomment 2nd line in css to see it disappear</p><hr>

<p>div with image (parent too high - unwanted space below image)</p>
<div class="outer"><img src="http://placehold.it/300x100" width="300" height="100"></div>
<hr>
<p>div with div (parent is not bigger than child)</p>
<div class="outer"><div style="background:url(http://placehold.it/300x100) no-repeat; width:300px; height:100px"></div>

CSS

div { font-size: 100% }

/* UNCOMMENT TO REMOVE THE EXTRA SPACE UNDER THE IMG ELEMENT */
div { line-height: 0 }

.outer{ background-color: red }
.inner { background-color: blue }

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css problem with font-size and <img>

HTML

CSS

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