Use the Following to Answer Questions

question 22

Multiple Choice

Use the following to answer questions
Kaiser Corporation sold its Telecommunications Division during 2010. The company's accountants determined that the division earned $850,000 of pre-tax income during 2008 prior to disposal. The sale resulted in a $370,000 loss before taxes. Kaiser's income from continuing operations for 2008 amounted to $4,138,000. The company's effective tax rate is 35%.
-The amount of gain (loss) from disposal of the Telecommunications Division that would appear on the 2010 income statement of Kaiser Corporation is:

• A)$129,500 loss
• B)$240,500 loss
• C)$370,000 loss
• D)$312,000 gain

---

Definitions:

Uniformed Services Employment and Reemployment Rights Act

A federal law that provides job protection and rights for military service members upon their return to civilian employment.

Fair Labor Standards Act

A United States law that creates the right to a minimum wage, and "time-and-a-half" overtime pay when people work over forty hours a week, among other protections for workers.

Pay Policy Line

A guideline used by organizations to determine the appropriate compensation levels for specific job positions within the market context.

Job Structure

The hierarchical arrangement of jobs within an organization that illustrates the comparative levels of responsibility, skill requirements, and the relationship between various jobs.