Evers, Inc

question 121

Multiple Choice

Evers, Inc. disposes of an unprofitable division of its business. The operation of the division suffered a $600,000 loss in the year of disposal. The loss on disposal of the division was $300,000. If the tax rate is 30%, and income before income taxes was $3,750,000,

• A) the income tax expense on the income before discontinued operations is $858,000.
• B) the income from continuing operations is $2,625,000.
• C) net income is $2,850,000.
• D) the losses from discontinued operations are reported net of income taxes at $450,000.

---

Definitions:

Common Property

Resources or assets that are jointly owned or shared among individuals or groups, often leading to issues of overuse or mismanagement.

Over-Utilized

A condition where resources, services, or facilities are used to their maximum capacity, often leading to degradation or diminished quality.

Common Property

A type of good that is non-excludable and rivalrous, meaning it is accessible to all but can be depleted through use.

Overused

Refers to the excessive use of a resource or item to the point where it diminishes its value or leads to its degradation.