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Splish Brothers Inc. disposes of an unprofitable segment of its business. The operation of the segment suffered a $219000 loss in the year of disposal.
Splish Brothers Inc. disposes of an unprofitable segment of its business. The operation of the segment suffered a $219000 loss in the year of disposal. The loss on disposal of the segment was $ 119000, if the tax rate is 31%, and income before income taxes was $ 1619000, the income from continuing operations is $1117110 net income is $1281000. the income tax expense on the income before discontinued operations is $ 442780. the losses from discontinued operations are reported net of income taxes at $ 338000
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