Question
Palomo Corp has a tax rate of 30 percent and income before non-operating items should this be income from operations of $357,000. It also has
Palomo Corp has a tax rate of 30 percent and income before non-operating items should this be income from operations of $357,000. It also has the following items (gross amounts).
Unusual gain$ 23,000
Loss from discontinued operations 183,000
Dividend revenue 6,000
Income increasing prior
period adjustment 74,000
What is the amount of income tax expense Palomo would report on its income statement?
a. $115,800
b. $ 60,900
c. $ 83,100
d. $108,900
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Fundamental financial accounting concepts
Authors: Thomas P. Edmonds, Frances M. Mcnair, Philip R. Olds, Edward
8th edition
978-007802536, 9780077648831, 0078025362, 77648838, 978-0078025365
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