Intraperiod Income Tax Expense

Kline Company has the following items of pretax financial (and taxable) "income" for the current year:

Income from continuing operations	$100,000
Gain on disposal of discontinued Division B	23,000
Loss from operations of discontinued Division B	(11,000)

Kline is subject to income tax rates of 30% on the first $40,000 of income and 35% on all income in excess of $40,000.

Prepare a schedule to calculate Kline's intraperiod income tax expense (and credit) amounts.

KLINE COMPANY Intraperiod Income Tax Expense / Credits

	Pretax Amount	Income Tax Rate	Income Tax Expense (Credit)
Income from continuing operations	$	%	$
		%
Gain on disposal of discontinued Division B		%
Loss from operations of discontinued Division B		%
			$