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Coronado Inc. disposes of an unprofitable segment of its business. The operation of the segment suffered a $210000 loss in the year of disposal. The
Coronado Inc. disposes of an unprofitable segment of its business. The operation of the segment suffered a $210000 loss in the year of disposal. The loss on disposal of the segment was $95000. If the tax rate is 20%, and income before income taxes was $1500000,
the income tax expense on the income before discontinued operations is $366000.
the income from continuing operations is $1200000.
the losses from discontinued operations are reported net of income taxes at $305000.
net income is $1195000.
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