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Bonita Inc. disposes of an unprofitable segment of its business. The operation of the segment suffered a $209000 loss in the year of disposal.

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Bonita Inc. disposes of an unprofitable segment of its business. The operation of the segment suffered a $209000 loss in the year of disposal. The loss on disposal of the segment was $102000. If the tax rate is 20%, and income before income taxes was $1540000, net income is $1229000. the income from continuing operations is $1232000. the losses from discontinued operations are reported net of income taxes at $311000. the income tax expense on the income before discontinued operations is $373200. 00

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