1/ Major Co. reported 2018 income of $301,000 from continuing operations before income taxes and a before-tax loss on discontinued operations of $73,000. All income is subject to a 38% tax rate. In the income statement for the year ended December 31, 2018, Major Co. would show the following line-item amounts for income tax expense and net income:

Multiple Choice

• $86,640 and $374,000 respectively.

• $114,380 and $228,000 respectively.

• $114,380 and $141,360 respectively.

• $86,640 and $186,620 respectively.

2/ Schneider Inc. had salaries payable of $61,200 and $90,600 at the end of 2017 and 2018, respectively. During 2018, Schneider recorded $620,400 in salaries expense in its income statement. Cash outflows for salaries in 2018 were:

Multiple Choice

• $529,800.

• $620,400.

• $591,000.

• $649,800.

3/ Cendant Corporation's results for the year ended December 31, 2018, include the following material items:

Sales revenue	$	6,270,000
Cost of goods sold		3,670,000
Selling and administrative expenses		1,240,000
Loss on sale of investments		181,000
Loss on discontinued operations		487,000
Loss on impairment from continuing operations		70,000

Cendant Corporation's income from continuing operations before income taxes for 2018 is:

Multiple Choice

• $622,000.

• $1,109,000.

• $1,167,400.

• $1,179,000.

4/ Misty Company reported the following before-tax items during the current year:

Sales revenue	$	800
Selling and administrative expenses		450
Restructuring charges		10
Loss on discontinued operations		40

Misty's effective tax rate is 40%. What is Misty's income from continuing operations?

Multiple Choice

• $204.

• $410.

• $340.

• $350.