Information for Hobson Corporation for the current year ($ in millions): Income from continuing operations before tax $ 155 Loss on discontinued operation (pretax) 32 Temporary differences (all related to operating income): Accrued warranty expense in excess of expense included in operating income 10 Depreciation deducted on tax return in excess of depreciation expense 25 Permanent differences (all related to operating income): Nondeductible portion of entertainment expense 5 The applicable enacted tax rate for all periods is 25%. What should Hobson report as income from continuing operations?
Information for Hobson Corporation for the current year ($ in millions): Income from continuing operations before tax $ 155 Loss on discontinued operation (pretax) 32 Temporary differences (all related to operating income): Accrued warranty expense in excess of expense included in operating income 10 Depreciation deducted on tax return in excess of depreciation expense 25 Permanent differences (all related to operating income): Nondeductible portion of entertainment expense 5 The applicable enacted tax rate for all periods is 25%. What should Hobson report as income from continuing operations?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Information for Hobson Corporation for the current year ($ in millions):
| Income from continuing operations before tax | $ 155 |
|---|---|
| Loss on discontinued operation (pretax) | 32 |
| Temporary differences (all related to operating income): | |
| Accrued warranty expense in excess of expense included in operating income | 10 |
| 25 | |
| Permanent differences (all related to operating income): | |
| Nondeductible portion of entertainment expense | 5 |
The applicable enacted tax rate for all periods is 25%.
What should Hobson report as income from continuing operations?
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