During the Year 2015,Tosco Corporation Suffered an $800,000 Loss When

question 39

Multiple Choice

During the year 2015,Tosco Corporation suffered an $800,000 loss when its factory was destroyed in a flood.Assuming the corporate income tax rate is 36%,what amount will Tosco report as an extraordinary loss on its income statement for 2015? Assume floods are not common in this area.

• A)$800,000.
• B)$512,000.
• C)$288,000.
• D)Nothing,since this does not qualify as an extraordinary item.

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Definitions:

Yield

The income return on an investment, expressed as a percentage of the investment's cost.

Revenue Generated

The total amount of income produced by a company through its activities, typically from sales of products or services, before any expenses are subtracted.

Capacity Management

The practice of planning and controlling resources, such as production capacity or human efforts, to meet changing demands without incurring unacceptable delays or costs.

Consumer Demand

The desire of consumers for specific goods or services, influenced by their purchasing power, preferences, and needs.