Freda's Florist reported the following before-tax income statement items for the year ended December 31, 2013: All income statement items are subject to a 40% income tax rate. In its 2013 income statement, Freda's separately stated income tax expense and total income tax expense would be:

Question

Freda's Florist reported the following before-tax income statement items for the year ended December 31, 2013:  All income statement items are subject to a 40% income tax rate. In its 2013 income statement, Freda's separately stated income tax expense and total income tax expense would be:

Quizplus · Accepted Answer

The income tax expense is calculated as 40% of the before-tax income. Therefore, the separately stated income tax expense is $100,000 (40% of $250,000), and the total income tax expense is $128,000 (40% of $320,000).

Freda's Florist Reported the Following Before-Tax Income Statement Items for the Year