1 Lupton Inc. disposes of an unprofitable segment of its business. The operation of the segment suffered a S200000 loss in the year of disposal. The loss on disposal of the segment was $100000. If the tax rate is 30%, and income before income taxes was $1600000, a the losses from discontinued operations are reported net of income taxes at $300000. b the income tax expense on the income before discontinued operations is $390000. c the income from continuing operations is $1120000. d net income is $1300000.

1 Lupton Inc. disposes of an unprofitable segment of its business. The operation of the segment suffered a S200000 loss in the year of disposal. The loss on disposal of the segment was $100000. If the tax rate is 30%, and income before income taxes was $1600000, a the losses from discontinued operations are reported net of income taxes at $300000. b the income tax expense on the income before discontinued operations is $390000. c the income from continuing operations is $1120000. d net income is $1300000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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