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:

Pituitary Gland

A small pea-sized gland located at the base of the brain, crucial for controlling growth, metabolism, and the function of other endocrine glands.

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A neurological disorder characterized by recurrent, unprovoked seizures.

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A medical condition characterized by difficulty falling asleep, staying asleep, or experiencing restful sleep.

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Psychological disorders characterized by the elevation or lowering of a person's mood, such as depression or bipolar disorder.