Pretax income: It is the income that is calculated by subtraction operating expenses(includes interest and depreciation ) from total sales or revenues. Tax Expense: It is the income or amount which an organization has to pay to the government. To calculate: Prepare a schedule that shows pretax income, tax expense or benefit and net income for both continuing operations and the discontinued operation.

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Chapter 12, Problem 6E

To determine

Pretax income:

It is the income that is calculated by subtraction operating expenses(includes interest and depreciation) from total sales or revenues.

Tax Expense:

It is the income or amount which an organization has to pay to the government.

To calculate:

Prepare a schedule that shows pretax income, tax expense or benefit and net income for both continuing operations and the discontinued operation.

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