Question
For its fiscal year ending October 31, 2017, Haas Corporation reports the following partial data shown below. Income before income taxes$540,000Income tax expense (20% $420,000)84,000Income
For its fiscal year ending October 31, 2017, Haas Corporation reports the following partial data shown below.
Income before income taxes$540,000Income tax expense (20% $420,000)84,000Income from continuing operations456,000Loss on discontinued operations120,000Net income$336,000
The loss on discontinued operations was comprised of a $50,000 loss from operations and a $70,000 loss from disposal. The income tax rate is 20% on all items.
Can someone explain to me why the income statement data would be misleading?
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Cornerstones of Managerial Accounting
Authors: Maryanne M. Mowen, Don Hanson, Dan L. Heitger, David McConomy, Jeffrey Pittman
2nd Canadian edition
978-0176721237, 978-0176530884
