When a Company Makes a Second Quarter Decision to Discontinue

question 32

Multiple Choice

When a company makes a second quarter decision to discontinue a segment, the first quarter tax expense:

• A) Results are not restated.
• B) is split between the tax expense calculated on restated quarter one income from continuing operations and the discontinued segment by subtracting the tax expenses calculated on the restated first quarter income from the original tax expense calculated for the first quarter, before the decision was made.
• C) is used to determine the incremental tax effect.
• D) is used to calculate the effective tax rate for the discontinued segment.

---

Definitions:

Panic Attacks

Sudden and intense waves of fear or discomfort, often marked by physical symptoms such as heart palpitations, shortness of breath, dizziness, or abdominal distress.

Psychopathology

The scientific study of mental disorders, including their symptoms, etiology (causes), and treatment.

Daily Functioning

The ability to perform normal daily tasks and activities, including work, social interactions, and self-care.

Seatmate

A person who is assigned to sit next to another person, often in a classroom or on a vehicle.