EyeBeam Corporation reports the following pretax accounting (and taxable) income items during 2019: Income from continuing operations
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Question:
EyeBeam Corporation reports the following pretax accounting (and taxable) income items during 2019:
Income from continuing operations | $90,000* |
Loss from operations of a discontinued division | (10,000) |
Gain from the disposal of the discontinued division | 25,000 |
*Of this amount, revenues are $320,000 and expenses are $230,000.
Required:
1. | Prepare the journal entry necessary to record the 2019 intraperiod income tax allocation in regard to the preceding information. Assume a tax rate of 15% on the first $40,000 of income and a rate of 30% on income in excess of $40,000. |
2. | Prepare EyeBeams 2019 income statement. |
Posted Date: