Major Co. reported 2016 income of $303,000 from continuing operations before inc

Question

Major Co. reported 2016 income of $303,000 from continuing operations before income taxes and a before-tax loss on discontinued operations of $73,000. All income is subject to a 30% tax rate. In the 2016 income statement, Major Co. would show the following line-item amounts for income tax expense and net income:

   

$90,900 and $230,000.

$90,900 and $161,000.

$69,000 and $376,000.

$69,000 and $212,100.

Major Co. reported 2016 income of $303,000 from continuing operations before income taxes and a before-tax loss on discontinued operations of $73,000. All income is subject to a 30% tax rate. In the 2016 income statement, Major Co. would show the following line-item amounts for income tax expense and net income:

Explanation / Answer

$90,900 and $161,000.

Income From Continuation operation before income taxes 303000 Income Tax Expense 90900 Income From Continuation operation 212100 Loss on Discountinued operation Net of Tax 73000*(1-.30) 51100 Net Income 161000

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