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Mountain View's activities for the year included the following: Gross Sales 7,400,000 Cost of goods sold 3,100,000 Selling and administrative expenses 900,000 Adjustment for a

Mountain View's activities for the year included the following:

Gross Sales 7,400,000
Cost of goods sold 3,100,000
Selling and administrative expenses 900,000
Adjustment for a prior year understatement of depreciation expense 112,000
Sales returns 71,000
Loss on operations of discontinued Segment A 411,000
Royalty income from infringement settlement 800,000
Unrealized loss on equity securities 41,000
Gain on disposal of assets of discontinued business Segment A 375,000
Extraordinary loss from hail storm 143,000
Gain on early extinguishment of convertible bonds 201,000

The company has a 30% effective income tax rate.

What is the company's income from continuing operations for the year?

  • A.

    $2,902,200

  • B.

    $2,761,500

  • C.

    $2,980,600

  • D.

    $2,955,400

  • Mountain View's activities for the year included the following:

    Gross Sales 7,400,000
    Cost of goods sold 3,100,000
    Selling and administrative expenses 900,000
    Adjustment for a prior year understatement of depreciation expense 112,000
    Sales returns 71,000
    Loss on operations of discontinued Segment A 411,000
    Royalty income from infringement settlement 800,000
    Unrealized loss on equity securities 41,000
    Gain on disposal of assets of discontinued business Segment A 375,000
    Extraordinary loss from hail storm 143,000
    Gain on early extinguishment of convertible bonds 201,000

    The company has a 30% effective income tax rate.

    What amount would the company report on the income statement relating to the discontinued operations for the year?

  • A.

    (25,200)

  • B.

    (287,700)

  • C.

    262,500

  • D.

    (36,000)

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