Evers, Inc

question 22

Multiple Choice

Evers, Inc. disposes of an unprofitable segment of its business. The operation of the segment suffered a $360,000 loss in the year of disposal. The loss on disposal of the segment was $180,000. If the tax rate is 30%, and income before income taxes was $2,250,000,

• A) the income tax expense on the income before discontinued operations is $513,000.
• B) the income from continuing operations is $1,575,000.
• C) net income is $1,710,000.
• D) the losses from discontinued operations are reported net of income taxes at $270,000.

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Definitions:

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Passive Verbs

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