Ask Question
1 April, 12:06

Provincial Inc. reported the following before-tax income statement items:Operating income $ 600,000Loss on discontinued operations 100,000Provincial has a 30% income tax rate. Provincial would report the following amount of income tax expense as a separately stated line item in the income statement: (A) $180,000.

(B) $198,000. (C) $150,000. (D) $168,000.

+2
Answers (1)
  1. 1 April, 12:16
    0
    Option (A) $180,000

    Explanation:

    The amount of income tax expense has to be reported by the provincial is shown as

    $600,000 * 30% = $180,000

    Income tax benefits of ($100,000 * 30% = $30,000) should be disclosed separately in the discontinued operations section of income statement.

    Therefore, the correct answer is option (A) $ 180,000.
Know the Answer?