LeBron's Bookstores Has Two Divisions: Media and Books

question 5

Multiple Choice

LeBron's Bookstores has two divisions: media and books.The media division had another great year with net sales of $14 million,cost of goods sold of $8 million,operating expenses of $3 million,and income tax expense of $900,000.The book division did not do as well and was sold during the year.The loss from operations and sale of the book division was $400,000 before taxes and $280,000 after taxes.Assuming the sale of the book division is reported as a discontinued operation,at what amount did LeBron's Bookstores report income before tax?

• A)$1,820,000.
• B)$3,000,000.
• C)$2,100,000.

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Definitions:

Decoding

The process of interpreting and understanding messages, symbols, or data, often used in communication, marketing, and data analysis.

Noise

Extraneous factors that can work against effective communication by distorting a message or the feedback received during the communication process.

Fields of Experience

The various domains or sectors in which an individual or organization has gained knowledge or expertise.

Experimental Method

A research technique that establishes the causal relationship between an independent variable (x) and dependent variable (y) by randomly assigning participants to experimental groups characterized by differing levels of x, and measuring the average behavior (y) that results in each group.