Lupton Inc

question 226

Multiple Choice

Lupton Inc. disposes of an unprofitable segment of its business. The operation of the segment suffered a $200,000 loss in the year of disposal. The loss on disposal of the segment was $100,000. If the tax rate is 30%, and income before income taxes was $1,600,000,

• A) the income tax expense on the income before discontinued operations is $390,000.
• B) the income from continuing operations is $1,120,000.
• C) net income is $1,300,000.
• D) the losses from discontinued operations are reported net of income taxes at $300,000.

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Definitions:

Consumers' Incomes

The total amount of money earned by the population, affecting purchasing power and consumer behavior in the economy.

Epidemic

A widespread occurrence of an infectious disease in a community at a particular time.

Fuel-Efficient

describes vehicles or machinery that use less fuel to achieve a certain distance or task, thereby reducing fuel consumption and emissions.

Equilibrium Price

Prevailing market price at which you can buy an item.