Choco Delight Inc. sold its gummy candy division, resulting in a loss of $80,000. Assuming a tax rate of 30%, the loss on this disposal will be reported on the income statement at what amount? A) $24,000 B) $80,000 C) $56,000 D) $30,000

Income Tax Fundamentals 2020
38th Edition
ISBN:9780357391129
Author:WHITTENBURG
Publisher:WHITTENBURG
Chapter11: The Corporate Income Tax
Section: Chapter Questions
Problem 5MCQ
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Can you explain this financial accounting question using accurate calculation methods?

Choco Delight Inc. sold its gummy candy division,
resulting in a loss of $80,000. Assuming a tax rate of
30%, the loss on this disposal will be reported on the
income statement at what amount?
A) $24,000
B) $80,000
C) $56,000
D) $30,000
Transcribed Image Text:Choco Delight Inc. sold its gummy candy division, resulting in a loss of $80,000. Assuming a tax rate of 30%, the loss on this disposal will be reported on the income statement at what amount? A) $24,000 B) $80,000 C) $56,000 D) $30,000
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