Beacon Inc

question 197

Multiple Choice

Beacon Inc. disposes of an unprofitable segment of its business. The operation of the segment suffered a $350000 loss in the year of disposal. The loss on disposal of the segment was $150000. If the tax rate is 30% and income before income taxes was $2300000

• A) the income tax expense on the income before discontinued operations is $540000.
• B) the income from continuing operations is $1610000.
• C) net income is $1800000.
• D) the losses from discontinued operations are reported net of income taxes at $150000.

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Definitions:

Minimum Wage Law

Legislation that sets the lowest hourly wage rate that employers can legally pay their workers.

Employment

The condition of having paid work or the process of hiring someone for a job.

Workers

Individuals engaged in any form of employment, contributing labor for the production of goods and services.

Profit-Maximizing Quantity

The level of production at which a company achieves the highest possible profit, determined by the point where marginal cost equals marginal revenue.