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12 December, 00:46

Provincial Inc. reported the following before-tax income statement items:Operating income $ 600,000Loss on discontinued operations 100,000Provincial has a 30% income tax rate. Provincial would report the following amount of income tax expense as a separately stated line item in the income statement: (A) $180,000.

(B) $198,000. (C) $150,000. (D) $168,000.

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  1. 12 December, 02:35
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    Option (A) $180,000

    Explanation:

    The amount of income tax expense has to be reported by the provincial is shown as

    $600,000 * 30% = $180,000

    Income tax benefits of ($100,000 * 30% = $30,000) should be disclosed separately in the discontinued operations section of income statement.

    Therefore, the correct answer is option (A) $ 180,000.
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