Danio's Diagnostics Had a Loss from Discontinued Operations of $130,000

question 102

Multiple Choice

Danio's Diagnostics had a loss from discontinued operations of $130,000. If their corporate tax rate is 40%, at what amount will the loss be shown on the Income Statement?

• A)$130,000
• B)$78,000
• C)$52,000
• D)Not enough information is given to answer the question.

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Definitions:

Consideration Requirement

A legal principle that an agreement must involve a bargain or exchange of value between the parties to be enforceable.

Holder in Due Course

A party who has acquired a negotiable instrument in good faith and for value, thus having certain protections against defenses and claims that could be raised by prior parties.

Shelter Principle

A legal concept that allows a person who receives goods in good faith without knowledge of a defect in the title to sell them with a clear title.

Holder

A party in possession of a negotiable instrument.