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:

In Vivo

A term used to describe experiments or procedures performed or taking place in a living organism.

Flooding

A psychological technique used in behavior therapy, often for phobias, where the patient is exposed to an overwhelming amount of the anxiety-provoking stimulus in order to reduce the fear response.

Implosive Therapy

A therapeutic technique where clients are exposed to their fears in a controlled environment to reduce anxiety.

Exposure Therapy

A psychological treatment that helps individuals face and gain control of fears and distressing emotions by systematic and repeated exposure to the feared object or context.