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28 May, 15:27

Dandy Candy Company sold its licorice division resulting in a loss of $60,000. Assuming a tax rate of 25%, the loss on this disposal will be reported on the income statement at what amount? Question 10 options: $75,000 $15,000 $60,000 $45,000

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  1. 28 May, 15:29
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    Answer: Option (d) is correct.

    Explanation:

    Given that,

    Company sold its licorice division resulting in a loss = $60,000

    Tax rate = 25%

    Loss on this disposal will be reported = $60,000 * (1 - 0.25)

    = $45,000

    Therefore, the loss on this disposal will be reported on the income statement is $45,000.
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