If a company has a discontinued operation gain of $30,000 and a 32% tax rate. What is the effect on net income? a. Increase of $20,400 b. Increase of $30,000 c. Increase of $9,600 d. No effect
If a company has a discontinued operation gain of $30,000 and a 32% tax rate. What is the effect on net income? a. Increase of $20,400 b. Increase of $30,000 c. Increase of $9,600 d. No effect
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 9MC: A company has pre-tax or operating income of $120,000. If the tax rate is 40%, what is the companys...
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Transcribed Image Text:If a company has a discontinued operation gain of
$30,000 and a 32% tax rate.
What is the effect on net income?
a. Increase of $20,400
b. Increase of $30,000
c. Increase of $9,600
d. No effect
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