If a Company Has a Discontinued Operation Gain of $30,000

question 162

Multiple Choice

If a company has a discontinued operation gain of $30,000 and a 32% tax rate, what is the effect on net income?

• A) Increase of $30,000.
• B) Increase of $20,400.
• C) Increase of $9,600.
• D) No effect.

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Definitions:

Autocratic

A leadership style where decision-making is centralized in the leader, with minimal input from group members.

Democratic

Pertaining to a system of government or decision-making that is controlled by the majority of its members, often emphasizing equality and individual rights.

Laissez-faire

Laissez-faire is an economic doctrine or leadership style that promotes minimal to no government intervention in the free market, or a hands-off approach in management.

Big Five

A personality model identifying five major dimensions of human personality: openness, conscientiousness, extraversion, agreeableness, and neuroticism.