Information for Hobson Corp

question 10

Multiple Choice

Information for Hobson Corp. for the current year ($ in millions) : The applicable enacted tax rate for all periods is 40%.
-How should Hobson report tax on the discontinued operation?

• A) A tax receivable of $12 million in the balance sheet.
• B) A tax benefit of $12 million to net against the $30 million pretax loss.
• C) A deferred tax asset of $12 million in the balance sheet.
• D) None of these answer choices are correct.

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Definitions:

Ambiguity

A situation, statement, or information that is unclear, uncertain, or can be understood in more than one way.

Passive Voice

A grammatical voice that emphasizes the action being done to the subject of the sentence, rather than who is performing the action.

Complex Sentence

A type of sentence structure that includes at least one independent clause and one or more dependent clauses.

Propositions

Propositions are statements or assertions that express a judgment or opinion, in logic representing content that can be true or false.