When a Company Makes a Second Quarter Decision to Discontinue

question 53

Multiple Choice

When a company makes a second quarter decision to discontinue a segment, the first quarter tax expense:

• A)​Results are not restated.
• B)​is split between the tax expense calculated on restated quarter one income from continuing operations and the discontinued segment by subtracting the tax expenses calculated on the restated first quarter income from the original tax expense calculated for the first quarter, before the decision was made.
• C)​is used to determine the incremental tax effect.
• D)​is recalculated using a new tax rate and first period results are restated.

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Definitions:

Justification

Providing sufficient reasons, evidence, or arguments to support a claim, belief, or action as valid or acceptable.

Premise

An assertion or proposition which forms the basis for a work's conclusion; in logic, it is the antecedent of an argument.

Simp

A slang term often used to describe someone who performs excessive subservience or attention to another person, typically someone they're interested in, often disregarding their own needs or dignity.

MP

Short for Modus Ponens, a form of argument in logic where if the first statement is true, then the second statement must also be true (If P, then Q. P, therefore Q).